Hyundai to focus on producing diesel cars to fuel growth

After exerting much effort to shed its image of a cheap carmaker in the west, Korean auto maker Hyundai is in danger of losing its early gains in India. The company has been India’s second largest car producer over the past three years, up until fiscal year 2012. The Korean automaker’s market share has fallen since fiscal 2010; and, in September 2012, Hyundai Motor India Ltd (HMIL) registered its largest dip in sales in the current fiscal year, a whopping 14% to a little under 31,000 units.
HMIL has strengthened its presence in the compact segment, but is still not perceived to be a carmaker with a complete portfolio because it lacks a strong diesel portfolio in the compact segment. The company is still counting on aggressively pursuing the mass diesel compact market with a diesel 110, to be launched in the second half of 2013. A source familiar with the HMIL plan said that the company is building a dual capacity engine plant at its manufacturing facility in Sriperumbudur, near Chennai. The factory, which will be HMIL’s third engine-making unit at the same location, will be able to switch production between diesel and petrol engines. (October 4, 2012)