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S. Muralidhar

Chennai, May 5

Hyundai Motor India's attempts at weaning away customers from other luxury car brands by offering diesel engines on its premium products like the Elantra and the Tucson have not worked because buyers here don't perceive the company to be a manufacturer of high-end passenger vehicles.

But, a small car with a Hyundai diesel engine will be a totally different story.

With its current brand equity among small car buyers, Hyundai's proposed 1.2-litre diesel engine could help it retain market share, if not improve it, after Maruti launches new models powered by diesel engines produced under the Suzuki-GM-Fiat engine alliance.

In the past, Hyundai has jointly developed all its diesel engines in collaboration with Detroit Diesel, a subsidiary of DaimlerCrysler AG.

But the new engine could come either from the same alliance or could have even been developed in-house by the Korean company. The new engine will most likely be a current generation common rail direct injected diesel.

Since Hyundai, thanks to its alliance with Detroit Diesel, has sourced the key electronic and injection components from Bosch, homologating these for the new engine may not be difficult. The new 1.2-litre Hyundai diesel engine is likely to be timed into the market to beat Maruti-Suzuki's mid-2007 deadline for their diesel engine rollout.

Even if Hyundai cannot bring in a new small car model within the next one year, it can still drum up considerable sales volumes in the interim by just offering the new engine in the Getz.

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Hyundai plans diesel engine plant

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