Hyundai’s diesel range to become cheaper

Now that we have your attention, Hyundai Motor India has announced that it will invest 300 million dollars for the establishment of a new flexible engine plant and press shop at its Sriperumbudur facility outside Chennai. This means diesel engines that will be manufactured or assembled here, instead of being imported – which in turn means less taxes.  

The company will sign a MoU with the government of Tamil Nadu on the fifth of November for the new plant. The new plant is expected to generate around 500 jobs.

The creation of this plant has multiple implications. Firstly, we can now expect Hyundai to launch a diesel variant for the i10, since a manufacturing facility means that a competitively priced diesel i10 is possible. The i20 might also get a three-cylinder oil burner which will make it significantly cheaper without the loss of efficiency or much performance.  Further, if the i20 gets a three-cylinder engine, then the supply of the four-cylinder engines can be directed towards the Elantra and the Verna, reducing their waiting periods.   

Bo Shin Seo, managing director said “through this investment we will strengthen our commitment to the state and the country. This investment will help us meet the growing demand of diesel vehicles in India and reduce the waiting period.” Hyundai sold 58785 units in October 2012 as compared to 48322 in October 2011 recording a growth of 21 per cent. We are sure this number will increase significantly once the plant and the press shop go operational.