Cars are lined up at Hyundai’s new plant in Chennai. (AFP)

Chennai, Feb. 2: Hyundai Motor is planning a small car which will be priced below its entry level model Santro.

The company, however, is not planning to match the price of rival Tata Motors’ Nano.

“We are studying the possibility of introducing a model priced below the Santro. But it will take us another three years to develop it,” said Arvind Saxena, senior vice-president (sales and marketing) of Hyundai Motors India Limited.

He, however, refused to speculate on the price for this particular model or the possible production numbers.

The Korean automobile giant today opened its second plant at Sriperumbudur in Chennai, adjacent to its existing 525-acre facility.

The new plant, which will see an investment of Rs 4,000 crore, will also have an engine transmission facility with a capacity of three lakh units.

The second plant will more than double the company's production capacity to 6.3 lakh units.

Hyundai plans to produce 5.3 lakh units in the current calendar year.

The company’s latest offering, the hatchback i10, will be manufactured in this new plant. By the end of this year, the Chennai facility will start exporting the diesel version of this model to various countries. The engine for the diesel variant will be imported from Korea.

Later, Hyundai also plans to produce the i20, also a hatchback, from this plant for exports. A feasibility study is also being done for the Avante — the sedan which will replace the five year-old Elantra.

“We showcased the model at the auto expo. A feasibility study is on and we are taking feedback. However, we have not yet decided when we would launch it in the market,” said Saxena.

Hyundai, which plans to make India its global manufacturing hub for small cars, will export nearly 2.6 lakh units from here.

Hyundai Motors India exports its models to nearly 73 countries and with the new plant, it will add another 17 countries.

According to company officials, the plant will create direct employment for about 7,500 people and indirect employment for 20,000.

Hyundai Motors India has about 230 dealers, which will be raised to 300 by the end of this year.

The Chennai facility is, so far, Hyundai's largest facility in the world. But by 2009, the company will be ready with its production facility in China, which will produce a total of 1 million cars per annum, said Saxena.