Maruti Suzuki India Chairman RC Bhargava has stated that the carmaker was planning to boost diesel car production by 2014. Mr Bhargava made this statement during the carmaker's 31st annual general meeting with share holders.
Mr Bhargava said Maruti Suzuki India had become a substantial diesel car manufacturer. This is a result of market demand where car buyers prefer diesel cars more than petrol cars. Maruti Suzuki which was primarily a small car specialist has now launched several diesel cars including the Ertiga MPV, Swift, Swift DZire and SX4.
Maruti Suzuki is planning to increase its diesel engine production in the next couple of years to cater to the increasing demand. The leading Indian carmaker is buying additional diesel engines from Fiat to meet demand. Maruti Suzuki current production capacity of diesel engines is 3 lakh units per year and its initial plan was to increase it to 7 lakh units by 2014. However this number can be revised upwards.
Maruti Suzuki will be adding two more units to its Manesar plant where it can create additional capacity for diesel engines. Furthermore, it can also build diesel engines at its soon to be built new plant in Gujarat. Suzuki Motor Corporation chief Osamu Suzuki has already visited the site of the new plant.
Increasing petrol prices, high mileage of diesel cars are some of the reasons behind car buyers preferring to buy them instead of petrol cars. Maruti Suzuki was initially unable to handle the increased demand for diesel cars but has steadily increased diesel car production. It did face several issues such as strikes and lockouts at its Manesar plant. However it is confident it can attain a market share of above 40% in the next few years by increasing diesel car production.