Country's second largest carmaker Hyundai launched on Tuesday a new 'i10', powered by a 1.2 litre Kappa engine, priced between Rs 3,99,000-Rs 5,43,000.

"This engine is exclusively manufactured in India only. This shows Hyundai's commitment to India to make it a global small car hub," Hyundai Motor India Ltd (HMIL) Managing Director and CEO Heung Soo Lheem told reporters here.

Hyundai Motor has become the fifth biggest carmaker in the world and the Indian operation contributes 12 per cent to its overall global sales, he added.

The company's new engine and transmission plant in Chennai, set up at an investment of $250 million, would have a capacity of 2.5 lakh units per annum.

Overall, the company has invested $421 million on the Kappa project over a period of 48 months.

Lheem said the company has already received huge export orders for the new 'i10', but the quantum of exports would entirely depend on the domestic demand.

He, however, said the current 1.1 litre engine would continue to power both 'Santro' and 'i10', but the new Kappa engine would significantly raise the bar in this segment.

Since its launch eight months back, the company has sold 1.85 lakh units of 'i10', of which 75,000 units were sold in the domestic market.