Hyundai plans diesel compact car
Hyundai Motor plans to introduce a compact car, which could be powered by a 1.2 litre diesel engine.india Updated: May 05, 2006 18:06 IST
In a bid to take on car market leader Maruti, India's second largest carmaker Hyundai Motor plans to introduce a compact car, which could be powered by a 1.2 litre diesel engine.
The new car would enjoy the benefit of the excise duty cut announced in this year's budget.
"We are developing a new version of a compact car as we need more models in the category," Hyundai Motor India Ltd Managing Director HS Lheem said.
Dispelling talks about the new car being a replacement for Santro, he said: "This will be a car in the same segment of Santro but this will not be a replacement of our flagship brand. Santro would continue to be in the market".
"I think, we can have more than one car in the compact car category as the volume of the segment is huge," he said.
He did not disclose the specifications of the compact car, however, said the company was working on a 1.2 litre diesel engine.
"We are currently doing feasibility study. The company is testing the engine in the country with regard to cost competitiveness as localisation is important (for the volumes segment)," he said.