Hyundai has completed development of a new, fuel efficient and cleaner diesel engine for compact cars. The new 1.6-litre diesel engine uses a second generation common rail diesel injection system.

The engine delivers a fuel economy rating of 4.7 L/100km, low emissions (125g CO2 /km) and is compliant with the latest Euro4 emission standards. The first car to have the U2 engine installed will be the all-new i20. The new Hyundai i20 is due to be launched in Europe towards the end of 2008.

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