South korean carmaker Hyundai is planning to invest $300m for the establishment of a new engine plant and a metal pressing shop at its Sriperumbudur facility near Chennai, India.
The company will also sign a memorandum of understanding (MoU) with the Tamil Nadu government for the new plant on 5 November 2012.
Hyundai Motor India managing director Bo Shin Seo said the new investment will strengthen the company's commitment to the state and the country.
"This investment will help us meet the growing demand of diesel vehicles in India and reduce the waiting period," Seo said.
The company has not revelead the details of the engines that it will manufacture in the new facility, but is expected to make1.2 litre engine that might be used in its i10 hatchback.
Apart from the new plant, Hyundai lready has two car plants in India with a total capacity to produce around 630,000 units per annum.
