Hyundai finalizes plans for diesel engine plant in India

Following the Indian government’s announcement that it would not impose higher taxes on diesel, Hyundai Motor India Limited said it is finalizing plans to build a diesel engine plant in India. Hyundai, which ranks second to Maruti Suzuki in terms of sales, has been planning to build a diesel plant in India for many years, but has had to hold back because of the government’s indecision on whether or not it will levy additional taxes on diesel fuel. The cost of diesel fuel in India is 40% less than the cost of petrol. Arvind Saxena, director of marketing and sales at Hyundai Motor India Limited, told the Wall Street Journal that the company plans to sell 410,000 cars in India this year, a 10% increase from last year’s sales. Hyundai manufactures petrol engines at its plant in Chennai, which has an output of 600,000 units a year. The company also assembles the Eon, Santro, i10 and i20, Accent, Verna and the Sonata brands in India. (April 19, 2012)