Maruti yet to decide on diesel engine unit,may take decision within two months

Maruti Suzuki India is keen on boosting the production of diesel cars and for that purpose the company is planning to set up a new diesel plant in Gurgaon. The company would be taking thin the next two months. The Managing Director of Maruti Suzuki India, Shinzo Nakanishi was reported saying that since the government has spared diesel from additional tax the company wants to promote more diesel cars in the country. The company at present has constricted supplies of diesel engines and in order to meet the growing demand of diesel vehicles the company needs to start producing diesel engines on its own, he added. He also mentioned that in the next two months the company would be taking the final decision on the subject of putting up a new diesel engine plant at Gurgaon.

At present Maruti Suzuki India manufactures all the petrol engines at the Gurgaon facility which has a capacity of producing over eight lakh units per year. The diesel engines are however sourced from the Suzuki Powertrain India Ltd (SPIL) and Fiat India. About the company’s options regarding diesel engines, Mr. Nakanishi mentioned that the company already has engine manufacturing infrastructure at its Gurgaon facility and can very well manufacture diesel engine on its own but the company needs to decide quickly whether it should compromise petrol for diesel. The demand for diesel cars has surged dramatically over the years since diesel is subsidized by the government. On account of this rising demand SPIL has increased its diesel engine capacity from 2.4 lakh units per year to 3 lakh units per year. Since January this year Maruti Suzuki India is receiving 1 lakh diesel engines per year from Fiat.