The much awaited Budget 2012 is finally out and in an interesting revelation, the diesel cars have been spared any extra hike in duty or hike in fuel prices thus creating a sense of relief among many Indian automotive customers. Contrary to strong speculations of the Govt mulling over increasing the duty on diesel vehicles which made many car companies withhold their expansion plans, the Govt decided to play it safe by not touching this sensitive fuel.
Now, many OEMs like Maruti Suzuki and Hyundai Motor India are readying their diesel expansion plans for the Indian market. The country’s largest car maker, Maruti Suzuki already produces diesel engines at a separate plant in Manesar and recently it fixed up with a deal with Fiat SpA for supplying an additional 3 lakh diesel engines. The company is now planning to add its 2nd diesel engine plant at its manufacturing facility in Gurgaon.
On the other side, Hyundai, the country’s 2nd largest car maker has already readied its plans of rolling out a 400 crore green field plant project that will be producing 1.5 lakh diesel engines per annum. The project is already in its final stage of rolling out and it will be fulfilling the demand for diesel engines once Hyundai slaps the diesel powertrain to its popular hatchbacks, the i10 and the Eon. Maruti Suzuki is targeting an even larger investment to the tune of 1000 crore which would enable it to produce 1 lakh diesel engines initially.