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Hyundai Motor India is studying the feasibility of setting up a diesel engine plant close to its existing car manufacturing plant near Chennai.

The second largest car maker in India also said that if the Government increases excise duty on cars during its Budget announcement in July, it could lead to an immediate drop in car sales in the country.

The Hyundai Motor India Managing Director, Mr H.S. Lheem, said car sales were showing signs of recovery as May results had shown, but any increase in excise duty could neutralise the recent gains.

Mr Lheem said he expects the Indian operations to post a 15 per cent increase in revenues this calendar year from $4 billion in 2008.

“We have initiated a feasibility study for setting up a diesel engine plant,” Mr Lheem said. He did not give further details about the study.

Hyundai Motor already has a petrol engine plant which makes Kappa engine at its Sriperumbudur plant near Chennai. The Kappa engine, which is fitted into the i10 car of Hyundai, was developed at a cost of over $400 million. Mr Lheem said the company expects to sell about 5.8 lakh cars during this calendar year, which is an increase of slightly over 18 per cent over the previous year.

Exports
Out of 5.8 lakh cars, about 3 lakh cars will be exported including to some European countries. Hyundai’s market share in India during 2008 was 20.4 per cent which it expects to maintain during the current year. Mr Lheem said Hyundai Motor has two plants at its Sriperumbudur site with a combined total capacity of 6 lakh cars but with three shifts, it can produce up to 6.3 lakh cars.

“We have been receiving more export orders of late which means our exports will outpace domestic sales at present,” he said. Hyundai is the largest exporter of cars from India and it mostly exports i10 and i20 models. Since January, Hyundai has increased the shifts to two, consisting of nine hours each and from July, it will increase the number of shifts to three consisting of eight hours each at its first plant.

Mr Lheem said the company’s R&D centre in Hyderabad was performing well and the company plans to increase the headcount there to 800 from 200.

Hyundai Motor India also plans to launch a new mini-car sometime in 2011 in the entry-level segment, though Mr Lheem ruled out the possibility of launching i30 model in the country for now.

Source:[The Hindu Business line]

That's a piece of good news indeed for diesel nuts - that is if Hyundai decides to pass on the resultant price advantage of its locally built diesel engines to its customers.

I think this is a very good move by Hyundai.clap:

With all competitors selling diesel variants in huge numbers, it is high time Hyundai offered oil burners. I am sure with the new proposed diesel plant will make Hyundai more competitive. With the new plant, i hope Hyundai would be able to make diesels for Santro, i10 and price it competitively thereby giving customers more diesel small cars to choose from. :thumbs up (Wishful thinking)

I wonder why hyundai took so long??

Read my mind! Hyundai's competitors are walking all over them, primarily with the 1.3 Fiat diesel (unofficially clubbed our national engine :)). Diesel cars account for a third of all car sales now, and probably about 40 - 50% of 4 - 6 lakh rupee hatchbacks (65% in the case of the Swift & Ritz). Hyundai was known for their lightning quick response to market conditions....and have definitely slowed down.

I assumed they always had a diesel assembly plant here. Are the current diesel engines imported from Korea?

why diesel in small cars like i10 and i20, ritz and zen, swift and palio?

people dont get it right, diesel is cheap but dirty, more damn poluting than petrol!

more maintaince for the diesel engine than a petrol engine!

more heavier than a petrol engine!

guys diesel is for tractors and MMs!

@Param

I believe some better informed BHPian may like to disagree, offcourse alonwith me. In 2009 diesel engine e.g 1.3MJD,1.6VGT are neither need more maintenance nor more polluting.
Being heavier is more than compensated by enormous thrust of torque availability. So I think diesel is no more DIRTY.
Moreover, all TSR supposedly having petrol engine run predominantly on KO mix. We can imagine what goes into Tractor & MMs

Hyundai mulls new diesel engine manufacturing unitBS Reporter / Mumbai November 20, 2009, 0:45 IST
The Indian arm of Korea’s Hyundai Motors is doing a study on the viability of a diesel engine unit in the country, which could help it reduce its dependence on Korea and gain a pricing advantage with increased localisation.


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At present, the company imports the engines directly from Korea after paying a hefty duty.


Han-Woo Park, newly appointed managing director and chief executive officer at Hyundai Motor India, said: “The minimum (sales) requirement for a diesel engine plant to be feasible is 100,000 units (per annum). We are doing the required field study and will take a decision on it at the appropriate time.”


The plant, if given a green signal, will come up close to the company’s existing vehicle manufacturing unit near Chennai where it also makes petrol engines, including the heavily promoted Kappa range.


Park, who replaced his senior, H S Lheem, in the company earlier this month, was non-committal on whether there would actually be a diesel engine unit. He also wouldn’t comment on the investment the project would entail if given a go-ahead.


Although Hyundai was one of the first companies to introduce the common-rail diesel technology (known for its high efficiency, refinement and frugal nature) in India, it failed to capitalise on the lead.


Currently, only a handful of its models, such as the i20, Verna, Sonata Transform and Tucson sport a diesel option, with only the i20 selling in high numbers. Car market leader Maruti Suzuki has installed a diesel engine it had developed in a number of top-selling models such as Ritz, Swift and Swift DZire. Most of these models have high waiting periods.


The company will be relaunching the i10 hatchback next year, strapped with a diesel engine. The company’s famed CRDi technology (which once powered its Accent sedan) will drive the i10 next year, one of the smallest diesel engines in the country available on a car.


A 1.1 litre, 3-cylinder diesel engine will power the i10 that will be launched by the middle of next year.


Hyundai Motor India is looking to produce about 50,000 cars from its Chennai plant this month, with 23,000 units marked for exports. It is currently operating the plant to full-capacity levels, with three shifts. This plant has a capacity of producing 600,000 units per annum.


In addition, the company will be increasing its headcount at its research and development facility at Hyderabad from 200 to 800. This facility is doing the back-end work for Hyundai Motor Company, Korea, which includes design work for components and parts like the suspension.


The company will also augment its dealer count to 320 from the current 274 by the end of 2010.

I remember reading about this some time back as well. I don't know how many feasibility studies they need. They need to have a diesel plant here ASAP if they want to take their volumes to the next level.

agree:
The i10 CRDi, if they can launch it at the right prices will rule the segment. I'm sure Maruti will be in big trouble with Ritz and may be even Swift! Even the i20 CRDi could do with some price reduction!

These cars are already setting the sales charts on fire, even with their premium price tags! I wonder what doubt Hyundai still has! :Frustrati

Hyundai not to set up diesel plant in India
November 18, 2009 16:44 IST

Reversing his predecessor's decision to set up a diesel engine facility in Chennai, Hyundai [ Images ] Motor India's [ Images ] new managing director and CEO Han-Woo Park on Wednesday said as of now there was no such plan.

"As of today, I do not consider a diesel plant, I do not have any idea. If the diesel market expands, then we will consider," he said in New Delhi [ Images ].

Hyundai not to set up diesel plant in India: Rediff.com Business

Regards,

Pradeep

Our journalists are complete retards.

i10 Diesel option ! but have to wait and see when they are going to launch here. or may be a 1.2 Diesel.

1.1 VGT

With ref to the above engine specs,

How can you have a 4 piston firing order when there are only 3 cylinders in the engine. ?
Compression ratio seems to be low, is the compression ratio generally low in CRDi engines due to a) the high pressure injection systems and b) the turbo charger,?

However the charger is not on most of the times, at revs below 1200-1900 the turbo does not provide greater pressure than the suction power of the engine.