The Indian unit of the Korean car concern Hyundai Motors is exploring the possibilities to secure a viable source for localized diesel version to compete the cost competition. The engines are currently imported at the cost of heavy excise duties. The need for the market share of Hyundai is at least 1 lakh units per year and the study is on for alternative designing of the engines. The anticipated unit is expected to be at a unit near Chennai, where the petrol engines are made like Kappa range.
Hyundai could not capitalize its lead despite being the first to deliver the common-rail diesel technology to the country. The vehicles from its portfolio- i20, Verna, Sonata Transform and Tucson are all diesel variants of which i20 alone fetches good show for the company. However, Maruti Suzuki has increased its portfolio to a substantial numbers – Ritz, Swift and Swift D’zire which have a long waiting periods. The i10 will be relaunched next year strapped by diesel version and will be driven by CRDi technology (fame for its Accent). This will be 1.1 lit 3 cylinder diesel engine and the company is planning to produce some 50000 units this month from its Chennai unit of which 23000 are for export markets. The unit is on three shifts with full capacity – 600000 units a year.
Also, the company is increasing its show in the R&D facility at Hyderabad from 200 to 800, in an effort to the back-end work for the Korean plant- for design the components and parts like suspension. For a better show, the dealer network will be increased from 274 to 320 by the end of 2010.