Hyundai India, the country’s second largest car manufacturer has put its plans on hold for the proposed diesel engine plant and has decided to wait for clarification from the government on the diesel pricing policy and the proposed tax on diesel cars.
According to Mr. Bo Shin Seo Managing Director Hyundai Motor India, the company is closely watching the government policy on diesel fuel. It is currently importing diesel engines for its diesel car models such as the i20 and the Verna sedan from Korea and will continue to do so until the government clarifies its fuel policies, added Mr. Seo.
The company has been increasing its exports to international auto markets to utilize its petrol engine manufacturing capacity in India for car models such as the i10 hatchback and the Eon small car. The move is in response to the shift in demand from petrol cars to diesel cars in the domestic market with the increasing gap between petrol and diesel prices.
