Hyundai eyes Rs2,300-crore Delhi Metro contract; Plans engine plant in Chennai

20 September 2006

Mumbai: Hyundai Motor Company, South Korea's top automaker, is eying a Rs2,300 crore contract for supplying 400 trains for Phase II of the Delhi Metro. The company is planning to build an engine and transmission plant besides a second car plant in Chennai, Chung Mong Koo, chairman of Hyundai Motor, said after a meeting with prime minister Manmohan Singh.

Hyundai would also set up the proposed engine factory through its rolling stock affiliate Rotem, a company statement said.

"The construction of a second (car) plant and a new engine-transmission plant would greatly boost production and sales," the statement added.

The Hyundai chief said Hyundai is willing to build an auto research and development (R&D) center in India and sought government support for the company''s investment plans in the country.

"The R&D center will upgrade the automobile industry of India," he said, adding, "We will try to become an enterprise which contributes to India''s economic growth."

The company, however, did not say how much it would invest to set up the engine plant.