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Gurgaon To Produce Diesel Engines For Maruti?
Maruti Suzuki's diesel engines are sourced from Suzuki Powertrain India Ltd (SPIL) and Fiat India and the company had ceased the investments on the plant over uncertainty on diesel policy, pricing and taxing. Carmakers like Maruti Suzuki, Hyundai Motors, GM, Ford and Tata Motors had withheld their investments of more than 3,000 crore at diesel plants due to budget fears in India.
Maruti Suzuki India Managing Director Shinzo Nakanishi said, “After the Budget spared diesel tax, we really need to take a quick decision on how to increase the production of diesel cars. At the moment we are constrained by limited supply of the engines. So we need to make diesel engines on our own and we need to take a decision within a month or two.”
He further spoke on the possibilities, “We already have the engine manufacturing infrastructure at Gurgaon, so if we have to manufacture diesel on our own we may do it there. The only question is whether we compromise on petrol for diesel...these are decisions we need to take quickly.”
Currently, Maruti Suzuki builds its petrol engines at the Gurgaon facility which has an annual capacity to build over eight lakh units. The demand for diesel cars in the Indian market have increased massively due to the low cost of the subsidised fuel compared to that of petrol. At present, Maruti diesel cars have a long waiting period which differs from cars to cars due to the shortage in engine production.
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