Hyundai India is planning to announce its plans for setting up a diesel engine facility by the end of April 2012 or early May 2012. The company is planning to manufacture diesel engines in India in order to keep up with the growth in demand for diesel cars in India.
The Indian subsidiary of the South Korean automaker had put its plans for the diesel engine plant on hold before the announcement of the Union Budget 2012-13 in March 2012. The company had apprehensions about a proposed additional tax on diesel cars as part of the Budget, stated Mr. Arvind Saxena Director of Marketing and Sales at Hyundai Motor India.
Currently, the diesel engines for its diesel car versions such as the Verna sedan and the i20 hatchback are being sourced from South Korea and are slated to be increased from 7,000 units to 10,500, an increment of 50 percent to reduce the waiting period on these car models.
Commenting on the company’s plans for the 2012-13 fiscal, Mr. Saxena stated that the company is targeting sales of 4,10,000 cars, an increase of 10 percent.