Hyundai plans to build diesel-engine factory in India

Hyundai Motor Company, the largest automobile company in South Korea plans to build its first diesel-engine factory in India, a senior executive said.

The South Korean company had earlier halted its plans for a diesel-engine plant in India due to a lack of clarity on government policy, Arvind Saxena, director of marketing and sales at Hyundai Motor India Ltd., told Dow Jones Newswires in a recent interview.

The announcement comes hours after Hyundai Motor Co.’s (HYMLY) Indian unit said Monday it will raise diesel engine imports from South Korea by 50% to cut long waiting periods for its Verna sedan and the i20 hatchback.

“The supply of both the diesel cars taken together will go up almost 50 percent from the existing 7,000 units per month to 10,500 units per month.”

“We expect the waiting period for the diesel Verna to drop from six months to two to three months and for the new i20 to about a month,” said Arvind Saxena, director for marketing and sales at Hyundai Motor India.

In calendar year 2011 Hyundai Motor’s domestic sales aggregated 373,709 units a growth of 4.8% from 356,717 units in the previous year.