Sriperumbudur, Tamil Nadu, Feb 2 (UNI) Hyundai Motors India Ltd today said it is gearing up to develop a small car, which will be a little smaller in size than its best-selling ''Hatchback Santro'' in the next three years.
''We are doing a feasibility study for the small car which will take another three years to make its reality,'' company Senior Vice President (Marketing and Sales) Arvind Saxena told reporters here at the inauguration of a second plant.
He said that the car will be a little smaller in size but with more space inside than the Santro and will be a market model which achieves all global parameters.
In India, leader Maruti Suzuki is ramping up and Tata Motors will roll out the Nano later this year, which can steal the market share from the popular Hyundai Santro hatchback.
Renault and Nissan Motor are studying the feasibility of a 3,000 dollar car with motorbike maker Bajaj Auto while others including Toyota Motor and Volkswagen have also expressed interest in a cheap car.
Annual passenger vehicle sales in India are estimated to nearly double to 20 lakh units by 2010 due to rising incomes and new launches.
Keeping this in view, Hyundai Motors India Ltd's (HMIL) second plant began operation here today with on investment of Rs 4,000 crore (one billion dollars), that will take its total production capacity to 6,00,000 units.
The plant was inaugurated by Tamil Nadu Chief Minister M Karunanidh who invited the automobile players to come and invest in the state, adding that in the past 20 months 12 MoUs have been signed with the auto firms which will fetch about Rs !5,000 crore investment and create 1.30 lakh employment.
The function was also attended by Communications and Information Technology Minister A Raja along with several other dignitaries.
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