Mr. Pranab Mukherjee, The Finance Minister of India has sure given a sigh of relief to the Car Manufacturers who were looking into investment in Indian Car Market, especially in diesel engine powered car market. Earlier Hyundai revealed their intention of setting up a Diesel Engine Plant in India, but the ‘pre-union-budget rumor’ about the ‘Diesel Tax’ kept them from further planning. Now, as The Economic Times reports, Hyundai India is all set to announce their plan of setting up the Diesel Plant in India. We have already discussed about Ford India’s $1 Billion Facility at Sanand,Gujarat, now we have Hyundai in the list!
As the news goes, Hyundai wishes to have a production capacity of 1,50,000 Diesel Engines annually. They’re also considering producing engines with different displacements like 1.1-Litre, 1.4-Litre and 1.6-Litre. So if the 1.1-Litre Diesel Engine goes in production, we can expect the little i10 in a diesel avatar soon.
Hyundai currently imports Engines that powers cars like i20 and Verna. Now The Korean Auto Giant is supposed to invest INR 500 Crores to set up the facility. The place and area for the factory aren’t finalized yet, though we expect it to be somewhere near to their existing factory at Chennai.
Source: Economic Times