Maruti To Get Diesel Engines From Fiat

Maruti Suzuki
Maruti Suzuki has struck a new deal with Italian carmaker Fiat to supply it diesel engines for the Swift,DZire, SX4 and Ritz. The new deal gains significance in the face of Maruti Suzuki's parent company Suzuki and Volkswagen's deal. The two carmakers had decided to cooperate with each other in product development.

Maruti Suzuki produces its own petrol engines and some of its diesel engines. Suzuki Powertrains, a Suzuki subsidiary produces diesel engines for the Indian carmaker. Maruti Suzuki had earlier stated that it would reduce its exports of diesel engines to Hungary as local demand had increased exponentially. Indian car buyers are preferring to buy diesel cars due to the increased price difference between petrol and diesel.

Diesel car sales consisted of 20 per cent of Maruti Suzuki's sales in the earlier years. The trend has changed dramatically in the past two years. 85 per cent of the bookings of the Ritz, DZire and SX4 are for the diesel variants. The carmaker would be forced to increase the waiting period of each of these models to more than six months if it had not struck a deal with Fiat.

Maruti Suzuki engineers are now looking at Fiat's multi jet engines and are studying if the engine requires any changes to suit Maruti's cars. A senior company executive said: “Some parts are different on Fiat's multi-jet engine that will need to be taken care of before we strap it on its cars."

Maruti Suzuki chairman R C Bhargava said it would take some time for the Fiat engines to be used by Maruti Suzuki. He said: “We need to do a lot of work before going for these engines. Besides technical changes to meet our needs, we need to homologate (technically certify) our cars again to be launched with any Fiat engine in India."

Volkswagen would surely be worried with this deal. Despite the two carmakers striking a deal over cooperation, there has been nothing substantial that has been done to prove the deal was working. While Suzuki has said Volkswagen's engine technology did not excite it, Volkswagen has said it would look in to product development with Suzuki shortly.

Article Published On: Friday, August 19, 2011, 14:07 [IST]
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