Will Hyundai be Tata’s neighbour in Sanand?

One of the largest compact car manufacturers of the county, Hyundai Motor India Ltd, seems to be zeroing in on Gujarat for setting up its second plant in India. State government sources revealed that Hyundai is seriously considering Sanand as their next destination after Chennai.

For expansion of its operations in India, Hyundai may invest an amount in the range of Rs1,500 crore to Rs2,000 crore for the second plant. However, senior general manager of Hyundai Motor India Ltd, J W Lee, said in Ahmedabad on Tuesday that he would not comment on the development though he said he would not deny the information either.

As Vibrant Gujarat Summit 2011 is just a few days away, it seems Hyundai is tight-lipped on announcing their expansion plans. State government officials informed DNA that company wants to set up their plant in Sanand, near Tata Nano plant.

Hyundai is seriously looking for expansion in the country as the company is now utilising 100% of its current installed capacity. “We have installed capacity of producing 6 lakh units per annum at our plant in Chennai, of which we are utilising 100%.   

At present, of the total capacity, we are exporting 50% and the rest is supplied in the domestic market," said Lee. Lee was in the city for the opening of a showroom.

Besides, the company is expecting a huge demand from domestic market in the years to come. "So we will have to expand our capacity. But I cannot comment on it and also cannot deny the information that the company is considering to set up a plant in Gujarat," said Lee.

Hyundai manufactures car brands such as Santro, i10, i20, Verna, Sonata and Accent in India.  If industry sources are to be believed, other companies like Ferari, Honda and Ford may consider Gujarat for setting up their manufacturing plants.