Korean car manufacturer Hyundai has announced it is to launch a diesel version of its Tucson SUV model in New Zealand.

The model should make a significant impact in the market as it is one of the most popular SUVs in the country.

Sales of the Tucson have increased rapidly in recent years, selling 773 units in 2005 and becoming more popular in 2006, coming in as the third most popular model. It has sold 455 units to June.

The diesel version will be available from today, with a recommended retail price of $38,990.

It is powered by a two litre turbo-charged injection diesel engine, said Hyundai New Zealand Managing Director, Philip Eustace.

He added that rising fuel prices would make the already popular Tucson more so with the release of the new diesel model.

"The Tucson fits a good niche in the market for those wanting the visibility and comfort of an SUV, without the bulk and awkwardness that goes with driving larger SUVs around town," he said.

Diesel cars require a catalytic converter with a platinum catalyst to filter out emissions subject to legal limitations.

Ÿ Adfero Ltd