Hyundai plans to set up engine factory in IndiaHyundai Motor, Korea’s largest carmaker, plans to set up a new engine factory and other manufacturing facilities in India to meet a growing market for diesel vehicles.
The facilities, including a new press shop, will be at the company’s existing manufacturing complex in Sriperumbudur near Chennai in southern India, Hyundai said in a statement.
The new plants will provide 500 jobs, he said.
India’s fuel pricing policy makes diesel about 30 percent cheaper than gasoline, spurring demand for vehicles running on the less expensive fuel. Maruti Suzuki India, Toyota Motor and Ford Motor have all announced measures to raise production of diesel vehicles to cater to this market.
Maruti, based in New Delhi, has bookings for 125,000 vehicles, with diesel cars accounting for as much as 90 percent of them. Sales of diesel vehicles rose to 72,462 units in the second quarter from 50,920 a year earlier, he said.
More in Industry
Sale of Doosan Infracore stake could be opportunity for Hyundai Heavy
Volvo XC60 ranks No. 1 for residual value in Encar study
Binggrae to scoop up ice cream competitor after FTC approves merger
LG accepting orders for rollable, $85K television
Shinsegae Group chair passes down shares to children