Hyundai planning to set up diesel engine plant in India

We were just telling you how the Ford Figo has sent the Hyundai i10 searching for cover (which in case you missed, click here) and Hyundai seems to have new plans to build a new plant for making diesel engines using locally sourced components. Crucially for Hyundai, this would keep costs under control and provide some solid competition to the Ford Figo. Hyundai also wants to offer more than one engine option to buyers and specially a diesel to consolidate sales.

“We concluded a feasibility study on a new diesel engine plant in India around three months ago. I think, a decision on that will be taken soon at our global headquarters after due consultations with our executives in India,” a senior official said.

“It would cost around $550 million to set up a diesel engine plant with an annual capacity of 300,000 units,” the official told IANS on condition of anonymity, as internal rules did not permit him to speak to the media. Small diesel cars are finding increasing demand in India and Hyundai would like to offer one for its i10 compact car. The i20 is already available in diesel form although it is beyond the reach for many. “We initially want to localise some critical engine components in India. Once that is done making other components like cylinder block heads is not a problem.”

Hyundai Motor India’s MD, HW Park did not commit any time frame for the setting up of a diesel engine plant but indicated that the i10 diesel was indeed on the radar for HMI. “I would like to point out that the company has so far made no firm plans in this regard and neither any figure concerning the investment, scale or timeline has been shared with the media,” said the company’s spokesperson for India operations. We can also recall what HW Park recently said : “it is indeed the Figo and not the Nissan Micra that has put the company on its toes”. He said the above statement to Indian Journalists at Korea. He was categorical that Hyundai was not duly concerned about the Nissan Micra.”

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