New Delhi, July 18: Hyundai Motor India, the country's second largest carmaker is investing $200 million to expand production capacity by one lakh units to 2.5 lakh cars and introduce new models like the premium hatchback car 'Getz' and luxury sports-utility-vehicle 'Terraccan'.
The company has, however, ruled out any immediate plans for an initial public offer (IPO), its managing director Jae II Kim said.
"The total investment plan for the second stage of expansion is $200 million. We are increasing capacity to 2.5 lakh cars. The construction work has started and will be completed by late 2004," Kim said in an interview.
The fresh capital investment would be made from internal accruals, he said, adding that this would increase the company's total investments to $900 million.
"We have studied the possibility. Actually, we do not feel it necessary in terms of regulation or capital requirement to go in for an IPO for the time being. Maybe, when we need to expand capacity beyond 2.5 lakh units, then we may raise some money," Kim said when asked about the IPO.
He said the 'Terraccan' would be introduced by early next month and priced between Rs 18-19 lakhs. It would be imported as a completely-built-unit from Hyundai India's parent company in Korea.
Bureau Report