In this Thursday, Oct. 4, 2012, photo, a Hyundai Elantra is seen inside of a Hyundai car dealership in Des Planines, Ill. -AP Photo

MUMBAI: Hyundai Motor Co's  Indian unit will invest $300 million in a new engine plant and metal pressing shop, the company said on Thursday, to expand in the country's fast-growing diesel car segment.

Hyundai, India's second-largest carmaker, is running its Indian operations at full capacity and has lost market share over the past year due to a lack of diesel models, which are popular thanks to government subsidies on the fuel.

“This investment will help us meet the growing demand of diesel vehicles in India and reduce the waiting period,” Bo Shin Seo, managing director, Hyundai Motor India, said in a statement.

The South Korean carmaker gave no details of the proposed engine plant's capacity, or when it would start production.

Hyundai said it was set to sign a memoradum of understanding with local authorities on Nov. 5 to make the investment at its sprawling production site in Chennai in south-east India.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.