Tata nods to the Fiat Maruti diesel pact

The leading car manufacturer of the country Tata Motors who also happen to be the 50% stake holder in Fiat has given a nod of approval to help Maruti Suzuki lay off troubles to a certain extent. Fiat India will begin to work on the order right away from January 2nd and wrap it up in a fortnight to dispatch it by second week itself.

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Ever since the labour unrest at Maruti Suzuki’s Manesar plant, the auto major is finding it extremely difficult to deliver the diesel variants of its flagship cars like Maruti Swift diesel, Maruti SX4, Maruti Ritz and Maruti Swift Dzire on time. The Italian car manufacturer Fiat on the other hand is synonymous as a diesel engine supplier to source its Multijet engines to many global car manufacturers across the world. Fiat India has an extensive set up at Ranjangaon near Pune with the capacity to roll out 300,000 units of diesel and petrol engines put together per annum. So, Maruti India came up with a brainstorm to use Fiat’s expertise in the diesel engine technology to help it meet the pressing demands and make the diesel car deliveries on time.

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The recent labour strikes in the stretch of August- October have badly affected the largest car manufacturer of India to an extent where Maruti India is still struggling to get back on track. The Suzuki Powertrain Limited is the only source of diesel engines for Maruti Suzuki India , which shares the diesel engine crop in the ratio of 30:70 with its Japanese counterpart Suzuki Motors.  Despite the manufacturing plant running at full swing production Maruti Suzuki India is still unable to meet the deadlines. Fiat has offered a helping hand ever since Maruti India’s deal with Volkswagen did not offer the assistance what the domestic car manufacturer had hoped with the diesel  engine technology. However, Maruti India has found an alternative legally this time with Fiat to source as many as 1 lakh diesel engines  per annum.