Thursday, March 22, 2012
By Manoj Kumawat
Hyundai diesel engine unit confirmed, India made diesel engine to power i20 and Verna Fluidic
The Union Budget may have been not so promising for the common man but is indeed so for the car industry. Now that there is no tax on diesel cars, every car maker is gearing up for some diesel powered action in India. The Korean car maker Hyundai is said to have given final shape to its proposed plan for a diesel engine plant in India. With an investment of Rs 500 crore initially, Hyundai India will be setting up a plant for diesel engines. These engines will be used in Hyundai i20 and Hyundai Verna Fluidic.
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Recently, as soon as there were reports that the government could tax diesel cars in India, Hyundai along with other car makers have put brakes on their expansion plans and car makers eagerly awaited for the Union Budget to come. Car makers took a huge sigh of relief when Union Finance Minister decided against the tax on diesel cars. This has enabled the car makers to pursue their plans. Besides all, Mahindra India is the one that is saved of all the trouble as 90 of its offerings are diesel cars and a tax on diesel cars means slower sale of diesel cars.
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Initially the diesel engine production capacity of the plant is expected to be kept at 1.5 lakh units and later on the capacity will be increased. 1.1 L, 1.4 L and 1.6 L engines will be produced at the Hyundai facility in Chennai and this will help Hyundai cut its imports of such engines for i20 and Verna Fluidic. The in house production of diesel engine could mean the launch of Hyundai i10 diesel and Hyundai Eon diesel apart from Hyundai Santro diesel could be on cards. Not only Hyundai, other car makers such as Maruti India, GM India and Ford have also stepped up their efforts of making India hub for their diesel cars.