Hyundai India has announced its plans to set up a diesel engine plant in India after the clarification on the matter of additional tax on diesel cars in the Budget 2012-13. Now that there has been no differential treatment for diesel cars, Hyundai is planning to go ahead with its plans to manufacture diesel engines in India with an investment of Rs 500 crore. The company has been importing diesel engines for its car models like the i20 hatchback and the Verna sedan.
The South Korean automaker is planning to set up a plant with a minimum annual capacity of 1,50,000 units of engines in the range of 1.1 liter, 1.4 liter and 1.6 liter. With such a diesel engine range, the company will be able to explore the possibility of offering a diesel engine in the i10 hatchback.
Hyundai India is among the many car manufacturers in India planning to implement diesel expansion plans to cash in on the high demand for diesel powered cars driven by higher fuel efficiency of the diesel cars as well as the lower cost of diesel fuel in comparison to petrol.