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Korean auto giant Hyundai Motors has just confirmed that it will upgrade its 1.2 three-cylinder diesel engine which currently features in the Grand i10, and the Xcent, to BS-VI standards. Hyundai India managed to work costing thanks to its parent company, which had already invested huge amounts in upgrading its diesel engines to Euro 6.
According to AutoCar India, a source from Hyundai said, "We are fortunate that a lot of the development work and costs to upgrade the U2 diesel engine family to BS6 have been taken care of. With Maruti and others discontinuing diesel cars, we have an opportunity to fill the gap in the market of around 3,00,000 cars per year."
With a total of 15 diesel cars scheduled to be off the shelf after 1 April 2020, Hyundai sees investing in upgrading to BS-VI as a big opportunity. The company wants to dive into the space that the Maruti Suzuki Dzire has occupied for a long time.
The diesel variant of the Maruti Suzuki Dzire retails roughly 1.2 lakh units a year, and Hyundai hopes to up its sales for the Xcent, which will have received a facelift at the time.
Hyundai have planned to take over voids left by the Swift and Ignis diesel variants with its next generation Grand i10. The all new Grand i10 will be powered by a 1.2-litre BS-VI compliant diesel motor.
Hyundai says prices of the diesel variants will be higher by about Rs 40,000. This figure is much lower than the Rs 2 lakh estimate that Maruti Suzuki had quoted.
Although sales of diesel cars are declining, they still continue to hold a large share of the market, and Hyundai wants to have a go at the segment. The 1.2-litre U2 is the only (and possibly the last) three-cylinder diesel engine remaining in India.
Thoughts About Hyundai Offering BS-VI Compliant Diesel Variants
There seems to be hope after all. We all agree that the demand for smaller diesel engines will not die quick. It will be a while before India transitions to 'only petrol' engines for smaller capacity cars. We also feel fuel prices play a big part, no matter how much the price gap closes.