Hyundai considering making diesel engines in India
India has become such an important market for the south Korean auto giant Hyundai that they are now considering manufacturing diesel engines here. With Maruti involved with Fiat in developing similar engines locally to help them sell diesel cars at affordable prices, it becomes important for Hyundai to prepare for the upcoming competition. Currently, only Tata has the affordable diesel car in the Indian market in the form of their Tata Indica model.
Fiat also makes Palio Diesel but has failed to generate much consumer interest. Maruti is expected to launch Suzuki Swift Diesel sometime next year powered by a CrDI engine. In fact, they are also rumored to be considering replacing the old Esteem model with a sedan based on the Swift platform. This could also be powered by the same engine range to compete with Hyundai Accent CrDi, which has been a smashing hit in the domestic market.
India is Asiaâ€™s forth-biggest auto market and is growing at a rapid pace. Hyundai Motor has earmarked investments of $500 million until 2008 for raising its share of India’s vehicle market to 25 percent by 2010. In addition, making diesel engines is an important part of that vision looking at the ever-rising prices of petrol in the local market.
Hyundai would be looking at offering their Getz and Santro models with diesel variants to counter any competition from Fiat and Maruti Suzuki.