Hyundai Motor to source diesel engines from Peugeot
Rupali Mukherjee & Murali Gopalan
NEW DELHI, January 13: Hyundai Motor Company of Korea will source Automobile Peugeot's TUD5 diesel engine for its successor to the Accent, which will make its debut in the country towards the end-1999. The company is also developing its own in-house diesel engine for its small cars.The Accent's successor will also be available in a petrol version, sources said. "The diesel version will be available as an option," they added. It would mean that Hyundai will be among the first Korean car makers in the country to offer the diesel alternative to its product range. Daewoo Motors India is also toying with the idea for only its multi-utility vehicle at present. The TUD5 is currently fitted in the Peugeot 309 GLD. It is noted for its efficiency and is rated by analysts as one of the best diesel engines in the world. The TUD5 is also being supplied by Peugeot's subsidiary, Peugeot Citroen Motors, to Maruti Udyog for the Zen.Sources at Hyundai Motor India said the new car, being referred to as the successor to theAccent, would be introduced simultaneously in Korea and India. It will compete in the mid-size segment here, currently occupied by a host of players like the Opel Astra, Ford Escort, Cielo, Esteem with others like the Mitsubishi Lancer and Honda City scheduled to make their entry soon. Notwithstanding the seemingly overcrowded scene, it is only the Ford Escort that has a diesel version. In fact, when bookings for the Escort opened last year, there was an overwhelming response to the diesel version, which surprised Mahindra Ford officials also. The company has, consequently, decided to offer a more powerful petrol alternative in the form of the 1.6-litre Escort, which will make its debut in April. The other two entrants in the diesel category during the course of this year are the Lancer with its 2-litre engine and the Astra, which is expected to bring in a 1.8-litre diesel car. The Lancer is expected to be priced at Rs 7.5 lakh, making it cheaper than the diesel Escort by around Rs 1 lakh. The diesel
Astra will be far more expensive and dealers say the car will be priced at around Rs 9.5 lakh, given that its petrol counterpart costs around Rs 8 lakh. (its on-road price in Mumbai is Rs 8.20 lakh). Thus, in 1999, the successor to the Accent will be the only diesel entrant in the domestic mid-size segment. It will start off with a major plus in Peugeot technology, arguably the best available in the country. Ironically, the TUD5's performance came for rave reviews in the 309 GLD, whose production has virtually come to a standstill with Peugeot's decision to withdraw from its local joint venture. The car, sources say, will also be priced competitively if the current pricing of the small car, Santro, is any indication. If that happens, the company will have a winner on its hands, they reckon. The diesel engine was not part of Hyundai's agenda, but with growing consumer preference for the fuel, the decision seems logical. The parent company is also developing its own diesel technology for the small car,
but officials said it was too early to say if this would apply to the Santro. The car is currently fitted with a one-litre petrol engine and is scheduled to hit the roads late this year The real competition in the diesel segment will come from the small-car segment comprising the 1400cc Telco Indica, the 1700cc diesel Uno and the Zen again fitted with the TUD5 engine. While the Indica will barely cost Rs 3 lakh, the Uno is expected to be priced around Rs 4.5 lakh and the Zen close to Rs 5 lakh.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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