Hyundai planning a 1.2-liter diesel small car for India?

With Suzuki Swift dominating their Hyundai Getz and Indica ruling the small diesel car market, Hyundai has finally decided to go on offensive.

Rumors are that the company is aiming at launching a small car powered with a 1.2-liter diesel engine by the end of the year.

The engine capacity would help Hyundai benefit from the recently announced excise duty cut. Hyundai Motor India Ltd Managing Director H S Lheem said in a statement: “We are developing a new version of a compact car as we need more models in the category.”

They are however not planning to replace their existing small car Santro in the Indian market. This new model would compliment Santro and would try to take on Indica and upcoming diesel models from Maruti.

Lheem added: “This will be a car in the same segment of Santro but 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. We are currently doing feasibility study. The company is testing the engine in the country with regard to cost, competitiveness as localization is important.”

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