Date:27/09/2006 URL: http://www.thehindubusinessline.com/2006/09/27/stories/2006092703310200.htm

Back Hyundai to finalise R&D centre plan in two months

Our Bureau

Hyderabad , Sept. 26

Hyundai Motor India Ltd is likely to finalise plans for setting up an R&D centre in the country within two months.

The Managing Director of Hyundai Motor India, Mr H.S. Lheem, said that no decision has yet been taken with regard to the R&D centre as also the place of the centre. "We are evaluating options between Chennai and Hyderabad."

The proposed R&D centre would mean an investment of up to $40 million and could potentially provide employment to 1,000 people and ideally be located in a 15-acre site, he said.

Speaking to newspersons after the launch of its latest mid-sized car Verna in Hyderabad, Mr Lheem said the choice of the location of the R&D centre would depend on the incentives the State would offer them in terms of land cost and tax concessions.

The company has about 18.5 per cent market share in India and plans to expand this share with the launch of more models across segments. With the company expansion plan underway, its production capacity would be ramped up to 6,00,000 units by 2007.

Alternative fuel

Asked about the alternative fuel options that the company is considering, Mr Lheem said no decision has been taken on his issue as yet.

Referring to biodiesel option in India, the company is evaluating this following the suggestions made by the President, Mr A.P.J. Abdul Kalam. For instance, the biodiesel component is about 5 per cent in Korea and the President has suggested that it be increased to 10 per cent in India.

With the launch of Verna, he reiterated that there would be no revision of Accent car prices. With Accent and Verna, Hyundai expect to garner a larger share of the mid-size market, he said.