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Hyundai Puts Diesel Engine Plant On Hold
Hyundai had posted a 5 per cent fall in sales in October despite positive response to the recently launched Eon small car. Hyundai currently builds two models the Verna and the I20, that get imported diesel engines from Korea. The diesel engine plant was intended to build 1.5 lakh engines per year. Some of these engines would be used for current models and the rest for new models that have been scheduled to be launched in the next few years.
Hyundai's decision to post pone construction of its diesel engine plant is a huge blow for the carmaker as it had planned to launch a diesel powered i10. Demand for diesel cars has increased even in the small car segment and the Chevrolet Beat has emerged as the most successful one.
Hyundai which as so far invested more than $2 billion in India does not want to take a financial risk at a time when the market is slowing down. It will continue to import diesel engines for the i20 and the Verna.
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