With the demand in the Indian car industry continuously slowing down, the country’s second largest car maker Hyundai Motors India Limited (HMIL) has decided to put its upcoming diesel engine plant on hold. It is to be mentioned here that Hyundai was planning to set-up a diesel engine plant in the Indian market with an investment of Rs 400 crore and an installed capacity of 1,50,000 units per annum.
In a statement given to PTI, a Hyundai Motors India Limited spokesman said, "Given the fact that the market is not buoyant at the moment, our diesel engine plant plans are on hold at the moment.” He added, "Having invested USD 2 billion in India, we can only move forward and stay committed to this market."
In the month of October, Hyundai India’s sales in the domestic market 4.95 percent. The company managed to sell 33,001 units of its cars during the month as compared to 34,720 units sold in the same month last year. In addition to this, the exports of the company dipped 12.42 per cent to 15,324 units during October 2011, as compared to 17,497 units dispatched to the overseas markets same month last year.
The proposed engine plant was supposed to produce three different capacity diesel engines including 1.1 litre, 1.4 litre and 1.6 litre. At present, the firm imports diesel engines for its cars like Hyundai i10 and Verna from its base market South Korea.
