U2 is Hyundai's new fuel efficient engine for compact vehicles

Hyundai's research and development centre has developed the new U2 1.6 CRDi, fuel efficient and cleaner diesel engine for compact passenger vehicles, the company said yesterday.

The U2 is an inline four-cylinder engine, which utilises a second generation common rail diesel injection system and is set to replace the 1,582cc engine, according to the automaker. The U2 is said to deliver a fuel economy rating of 4.7 litre per 100km along with a low carbon dioxide emission (125g CO2 /km). The engine is compliant with the latest Euro4 emission standards.

The company plans to install the U2 engine in the all-new i20, which will be produced at the Hyundai Motor Company's second Indian plant at Sriperumbudur near Chennai.

Hyundai plans to introduce the i20 hatchback sedan in the 'B' segment in India by December 2008, after its debut in the Paris Motor Show in September (See: Hyundai Motor India to roll out i20 in December). Earlier in January the company had disclosed that it would reduce the weight of the car to boost engine performance, for which it was collaborating with Saudi Arabia's SABIC Innovative Plastics (earlier GE Plastics).

Hyundai has already announced its commitment to make India its sole small car manufacturing hub, and has even relocated its small car research and development (R&D) to its Hyderabad facility. It commissioned its second plant in February 2008, beefing up its operations. (See: Hyundai Motor India commissions its second Indian plant)

The company has invested $421 million on the Kappa project, over a period of 48 months.In a bid to gain a significant foothold in the demanding small car segmet in the country, the Korean carmaker has also put in $250 million for its new engine and transmission plant in Chennai, with a production capacity of 2.5 lakh units per annum. (See: New Hyundai i10 is powered by 1.2 litre Kappa engine)