Hyundai to invest US$550 million to build new diesel engine plant

South Korea’s Hyundai plans to invest around US$550 million to build a new diesel engine facility in India, reports the Hindustan Times. The company plans to manufacture small-capacity diesel engines at the plant, with a planned capacity of around 300,000 units per annum, for its models such as the i10, along with locally sourced components, to ensure its competitiveness in the price-sensitive Indian small-car market. Citing a company official, the newspaper reports that Hyundai recently concluded a feasibility study for the new plant and claims that a formal decision is expected soon, after consultations with company executives in India. Hyundai is the third-largest automaker in India and is the largest exporter of passenger cars from the country. (May 20, 2010)