'Live Mint' newspaper, quoted an anonymous source and claimed that the Indian arm of the Korean automaker is likely to invest at least Rs. 500 crore to construct a factory that would have an installed capacity to manufacture around 100,000 engines. This complied with India's second largest passenger carmaker's aim to manufacture diesel variants of its existing models likeHyundai i10 and Hyundai i20 in the country and save the car's cost by around 15-20%.
At present, the Indian arm of the Korean automaker has a petrol engine plant which makes Kappa and Gamma engine strapped onto models like the Hyundai i10 city (Kappa version) car and Hyundai i20 super-hatch. The engine was developed at a cost of over US$ 400 million.
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