Hyundai India is not unaffected by the slowdown in India car market. An year ago, the Indian automobile market was having its good times with the car sales at encouraging levels for the automakers in India. One year, dozens of interest rate revisions, oodles of inflation, rise in fuel prices and global slowdown in economy are a few factors to blame for all that has changed in past one year. Hyundai India in December 2010 announced a Diesel engine plant to meet the demands of Indian market with an investment of Rs. 400 Crore. As per the new thinking and new possibilities, Hyundai has decided to put the Diesel engine project “On Hold” for now.
There is not clarity on for how long this project is on hold or will resume. The reason behind putting the plant on hold is that the car sales are overall on a slowdown in India and the growth is also negative for past some weeks. So investing in a diesel plant at this time makes less business sense. We hope the tough times for India Automobile market pass soon and we see a recovery in the overall economy in the coming months. We will share more updates as they are revealed.
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Hyundai India News
