Rumour: Hyundai's new plant could come up in Rajasthan

Earlier this year, we had reported that Hyundai was exploring the possibility of setting up a second manufacturing facility in India. The state of Gujarat was one of the venues being considered. Now, latest media reports suggest that the company is scouting for a suitable location in the state government of Rajasthan.

Hyundai officials are believed to have been in touch with the Bureau of Investment Promotion, an agency in charge of investment promotion and single window clearances in the state of Rajasthan. BIP plays a significant role in developing investment policies for the state, and supports investors that are exploring investment opportunities in Rajasthan. According to BIP, Rajasthan, this nodal government agency provides services, which are focussed on investments above Rs 10 crore in the state.

Hyundai has shown a preference for northern and western India for its new plant. This will enable the company to deliver cars quicker across the country. 

Hyundai's Chennai plant produces 6.8 lakh vehicles annually and does not have much scope for expansion. This has made the company limit its production for export markets in favour of the domestic market. With plans to introduce more models in the near future, Hyundai needs a new plant to be able to meet the demand for its cars.

Source: Autocar Professional