Speculation is rife that a diesel powered version of the Hyundai i10 hatchback may be in the works. This stems from the fact that the South Korean car maker is establishing a production facility in the country solely for diesel engines. Soon after the Union Budget 2012 was announced by the Finance Minister of India, rumours spread that Hyundai India will set up this unit at a cost of approximately Rs. 500 crores. An official statement regarding this plant, which will have annual production capacity of 1.5 lac units, is expected in coming times. Presently, the company imports the diesel motors that are used in its i20 and Verna Fluidic models sold in India.
The car maker had been waiting to green-light the project, but had put off the final decision to see whether the national government would levy additional taxes on diesel cars. Hyundai was reluctant on investing such a huge sum in the project till the government's stand on the issue became clear. As per sources familiar with the project, "With the budget throwing clarity on the matter, the plans for diesel engine factory are on again and an announcement can be expected over the next month or so." It is expected that the facility will be used for manufacturing diesel units of 1.1 L, 1.4 L and 1.6 L capacities.
According to sources, "With the budget throwing clarity on the matter, the plans for diesel engine factory are on again and an announcement can be expected over the next month or so." With wide ranging capacities of the engines, the company will be able to cater to the demands of small as well as large cars. The 1.1 L engine will probably be used to serve an i10 diesel model.
The company is looking to establish a plant exclusively for diesel cars as there is a huge demand for diesel powered passenger cars in India. Such vehicles enjoy many price incentives over variants running on petrol and deliver better fuel efficiency, thus making them cost effective in the long run. It is anticipated that the South Korean car maker will set up this new unit at its existing plant located in the vicinity of Chennai. However, it may also consider other options, such as Gujarat.
