While car manufacturers like Hyundai India are exploring other avenues, Maruti India has not given up on its struggle for diesel engines. Maruti India is unable to make delivery of its star hatch Swift on time. The situation is even worse with the Swift diesel hatchback. Therefore, Maruti Suzuki India now needs to depend heavily on others for diesel engine supply. It makes more sense to take the advantage of Fiat who is already known for supplying its 1.3 L diesel engine that powers Maruti Swift. According to the latest information, Maruti India and Fiat have come to a mutual agreement where in Fiat will supply 1 lakh diesel engines per annum to the former to ensure Swift diesel delivery on time.
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Strangely, the diesel car demand has reached a new high at 22% while the car sales in general have seen a negative growth of 1.5%. The petrol price hike is the sole culprit behind all this. The gap which stands to be around Rs 25 between the petrol and diesel prices, is pushing the customers more towards the diesel cars. Now, there is a new twist to the story. Out of the blue, Government has delivered a ultimatum to raise the excise duty on the diesel cars. Car manufacturers are trying to combat the situation in their own way.
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Maruti India, on the other hand prefers to stick to diesel car demand which always seems to be on an uphill. The diesel cars are outselling the petrol cars by far. And the piling petrol car inventory at the MSI’s own sales outlets is the live example. Moreover, the car market sales figures further drive the point home. The 44% diesel car sales during the first half of the fiscal is revved up from 38% of the corresponding time last year. To prove that they have backed the right horse, Maruti India has increased the price of the diesel variants of Maruti Swift and Maruti Ritz cars up to Rs 10,000 very recently.
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