The locally assembled, smaller-capacity petrol engine attracts a lower tax rate.

The facelifted i20 was launched at the ongoing Auto Expo 2018. The car is on sale with a starting price of ₹5.35 lakh for the base petrol, with prices going up to ₹9.15 lakh for the fully loaded diesel (both prices ex-showroom, Delhi). In May of next year, the car will get a continuously variable transmission (CVT) mated to the 1.2-litre Kappa engine and the carmaker expects sales to see a rise with the introduction of the 1.2 CVT variant.

This version will get a price reduction thanks to tax savings – it falls into the 12.5 percent tax bracket on cars under four metres in length and with petrol engines under 1,200cc. The earlier car had a 24 percent tax rate on it.

A lot of parts for the 1.2 Kappa is heavily localised, so the company can save money there as well. "The share of the 1.4-litre automatic among the overall i20 sales was only 2 percent earlier. With the 1.2-litre CVT, we see the share surging to 10-15 percent," Y K Koo, managing director and CEO, Hyundai Motor India, said. "The old i20 was very expensive since both the 1.4 engine and the torque converter were imported. I think the price will be more competitive since we are developing the unit locally and we have the tax benefit as well," Koo added.

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