In yet another recognition of India's manufacturing expertise, Hyundai Motor India has decided to export engine and transmission to global manufacturing units of its Korean parent company and subsidiary Kia Motors from next year.

It has also set up a research and development centre at its Chennai plant, the seventh R&D facility of Hyundai Korea in the world, HMIL managing director Jae II Kim told PTI.

HMIL will produce 50,000 engines and transmissions for export to Hyundai facilities in Malaysia and Indonesia as well as to Kia Motors in Korea, Kim said.

"We will produce 300,000 engines and transmissions from next year. Of this, 250,000 is for domestic market and the extra 50,000 units goes for exports," he said.

The company's immediate plans are to export engines and transmissions for the compact car 'Santro' and mid-size model 'Accent' to these two Southeast Asian countries and Kia Motors for its small cars, he said.

"With Kia, we can send engines and transmissions for their 1.1 litre cars," Kim said, adding this showed that the Indian subsidiary could make world-class products at competitive prices.

HMIL, India's second largest carmaker, is a wholly-owned subsidiary of Korea's biggest automaker Hyundai Motor Company and produces cars at its plant outside Chennai.

The plant can now make 150,000 cars annually which will be increased to 250,000 units next year.

Labour unrest hits Hyundai plants

Meanwhile, reports from Seoul say that Hyundai's overseas operations -- including those in India -- have been badly hit by labour unrest.

Reports said that factories in Pakistan, Russia, Egypt and Malaysia had been forced to suspend production.

Operations in India, China, and Turkey too had cut production as the Hyundai plants in Korea have virtually stopped supplying auto parts overseas because of the labour problem.

Plants in India and Turkey have been slightly less impacted as they had more components in reserve than China, but once the stockpiles run out they could face closure, newspaper reports stated.