Hyundai has finalized plans to set up a diesel engine plant in India. The announcement comes soon after the budget session as the company was fearing of an additional tax which would make the diesel cars even more expensive.
Hyundai is likely to invest around Rs 500 crore for the engine facility, and an official announcement is expected soon. Currently Hyundai is importing the diesel engines to strap on cars like i20 hatchback and the Verna sedan.
Hyundai’s plans come months after the Korean company had put on hold a decision on the diesel plant as it awaited a clarity from the government over the treatment of diesel vehicles. Hyundai is looking at having a minimum capacity of 1.5 lakh units for the plant and the engine configurations being considered are 1.1-litre, 1.4-litre and 1.6-litre.
Seems like the i10 will get a diesel engine sooner than expected. The i20 may also get a 1.1 litre diesel engine which will help the South Korean car maker to price it even more fruitfully.
Hyundai’s diesel engine plant is likely to come up at the company’s existing factory premises near Chennai, though other options are also being looked at, including in Gujarat where the company plans to set up its third plant for India.
