Hyundai Motor India Plans Major Overhaul of Tamil Nadu Plant with Rs 1,500 Crore Investment Hyundai Motor India, an Indian subsidiary of the Korean automobile giant Hyundai, Tuesday announced its plans for a large revamp and modernization of its manufacturing facility in Tamil Nadu. This forms part of Hyundai’s overall efforts to maintain its competitive market both in the country and worldwide as the company caters to the growing demand for passenger cars. The company has presented a Pre-Feasibility Report in detail, for an investment of an estimated Rs 1,500 crore.
Erection capacity to be expanded at Irungattukottai Plant, Tamil Nadu
The manufacturing plant of Hyundai is located at Irungattukottai in Kancheepuram district, Tamil Nadu. It is already a huge production base for Hyundai cars, sprawling over an area of 538 acres. The current capacity of this plant is 8.50 lakh cars per year, and though the modernization project undertaken would have really brought about enhancement of the plant, the company clarified that there would be no increase in production capacity. Instead, it will focus on upgradation and enhancement of infrastructure to meet future demands better.
The new redesign will increase the built-up area of the plant from 5.40 lakh sq. meters to 7.21 lakh sq. meters without the overall production capacity being changed. This should help Hyundai Motor India further rationalize the production process and enhance the efficiency of operations in the plant.
Employment Opportunities and Economic Impact
At present, Hyundai has 18,706 employees at its plant in Tamil Nadu. The plant expansion will add approximately 155 new jobs bringing the headcount at the plant up to about 18,861 employees. Hence though a very small hike in employment, this would clearly show Hyundai’s commitment towards the local economy and job avenues provided to the region.
Hyundai maintains that expansion will bring positive changes not only in employment. But also in the broader socio-economic development of areas around the factory. This will have the effect of a direct and indirect employment opportunity in the locality for residents and other businesses in general, bringing economic growth within the vicinity.
Hyundai Motor: No Addition Land Acquisition
This is one of the critical considerations of the expansion, as it will not require the purchase of any additional land. The site plot area of the project, therefore, would remain at 21.78 lakh sq. meters. Since it increases only the built-up area from 5.40 lakh sq. meters to 7.21 lakh sq. meters. This obviously shows that Hyundai has utilized available resources to implement the modernization plan by not increasing geographical coverage.
Hyundai Motor: Environmental and Market Impact
Hyundai Motor India has stated that the upgrade will turn out to be environmentally friendly in the long run. However, the specifics about how refurbishment would lead to improvements on the environmental side have not been provided in PFR. Nevertheless, green technologies that are featured by modern manufacturing plants help to decrease carbon footprint by minimizing waste. Thus, it can be understood that the developed plant would contribute to efforts for environmental protection.
It will also facilitate the company in seizing the growing passenger car demand from the home market as well as the overseas market. Hyundai exports its vehicles to 88 countries, such as Africa, the Middle East, Latin America, Australia, and the Asia Pacific. The renovation will prove effective in keeping this Indian plant at par with the world’s supply chain for the company.
Timeline and Future Prospects
The entire expansion plan will be completed by the end of five years from now. Construction work would start once Hyundai receives approval from the concerned regulatory bodies. Once this project is completed, it will remain an integral part of Hyundai’s manufacturing operations in both domestic and export markets.
Hyundai Motor India currently has sales points and 1,551 service points across India. The company offers the widest range of vehicles as hatchbacks, compact SUVs, premium SUVs, and electric vehicles. As Hyundai is modernizing its plant, it is in line with its long-term vision of sustained further growth of market share in the country’s growing major automotive market.
Conclusion
For instance, Hyundai Motor India invested Rs 1,500 crore in upgrading its Tamil Nadu plant. Aims to develop more efficient production methods without affecting its production capacity. This step would allow the company to meet the real demands of markets at home and abroad. Hyundai’s attention to socio-economic and environmental impact indicates its commitment to responsibility. Sustainable growth in the Indian automobile industry.
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