India's second largest carmaker, Hyundai Motor India, is investing $200 million to expand production capacity by 100,000 units to 250,000 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, 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 250,000 cars. The construction work has started and will be completed by late 2004," Kim said.

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 250,000 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 lakh (Rs 1.8-1.9 million).

It would be imported as a completely-built-unit from Hyundai India's parent company in Korea.