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Fiat Engines To Power Maruti Suzuki
India's largest manufacturer of four wheelers Maruti Suzuki currently manufactures its engines at its facility in Manesar, and assemble diesel mills at its Gurgaon facility. They will be preparing its own 800cc diesel mill in India for India.
The Japanese based manufacturer sources larger diesel engines for its Swift hatchback and Dzire sedan. Fiat provides diesel mills to Maruti Suzuki in India. The Japanese-Italian union has been extended for a further three more years.
The Italian engine manufacturer, assembles its diesel powertrains in India. They will continue providing Maruti Suzuki with the 1.3-litre Multijet engine. The previous contract was supposed to end in April, 2015.
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Maruti Suzuki needed diesel engines urgently in India due to a sudden rise in demand. In 2011, the Japanese manufacturer promised to purchase 1,00,000 diesel engines every year. However, with the current demand of diesel vehicles falling down Maruti Suzuki has opted to increase its agreement with Fiat.
The Japanese manufacturer is currently working on assembling its own diesel mill. It is expected to be a frugal 800cc diesel engine that will power the Celerio and a mini-truck. It will manufacture its diesel engines at its facility in Gurgaon and will be capable of producing 1,50,000 engines.
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Maruti Suzuki explains extending its diesel engine contract with Fiat, as it believes the growth of diesel vehicles will rise soon. The diesel engines are more efficient than current petrol engines. The major factor is the difference in price of the fuel, which will continue demand of diesel vehicles in India.
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