Hyundai India is revisiting the establishment of a diesel plant in India with a fresh feasibility study following which the company will take a decision on whether to process with the setting up of the plant or not. The proposed plant will be capable of producing 1,50,000 engines annually including 1.1 liter, 1.4 liter and 1.6 liter engines.
The company had earlier in 2010 announced its plans to set up a diesel engine production facility with the investment of Rs 400 crore. The plans were put on hold in November 2011 in response to the slowdown in the Indian auto industry.
Industry experts expected the company to revive its diesel engine plans in March 2012 after the proposed additional tax on diesel cars was spared from the Budget 2012-13.
