Hyundai Motor India has announced an increase of 50 percent in its diesel engine production for the diesel variants of the Verna sedan and the i20 hatchback. The total supply of diesel engines will increase from 7,000 units to 10,500 units on a monthly basis.
The company sources diesel engines from South Korea and has increased the sourcing in response to the increase in demand for diesel powered cars in India drive by cheaper diesel fuel in comparison to petrol. According to Mr. Arvind Saxena Director (Marketing and Sales) Hyundia Motor India Limited, the increase in the diesel engine sourcing will lower the waiting period for the Verna sedan to 2-3 months and for the iGen i20 to around 1 month. The Verna sedan currently has a waiting period of 6 months.
In view of the surge in demand for diesel cars, the company is considering setting up a diesel engine plant in India with an investment of Rs 400 crore to manufacture engines with capacities of 1.1 liter, 1.4 liter and 1.6 liter.