Maruti Suzuki mulls production of small diesel engines

Maruti Suzuki India Limited is asking its parent company, Japanese automaker Suzuki Motor Corp., to invest in the production of small diesel engines. Suzuki is known globally as a maker of gasoline vehicles, but with the increasing demand for diesel vehicles in India, Maruti Suzuki’s MD & CEO Shinzo Nakanishi said it’s time to invest in small diesel engines. “I am only interested in small diesel engines, nothing bigger than 1.3 liter. I have been pushing Japan to develop small size diesels because of the way the Indian market is going. Even if the differential between diesel and petrol comes down due to government policy decisions, diesel will still be 60% of the car market and petrol 40%. I am hoping Japan will take a decision on this soon,” he said. According to Nakanishi, Maruti Suzuki is also in negotiations with Fiat regarding the sourcing of more diesel engines from the French automaker. The company has plans to increase the capacity of its diesel engine factory in Manesar, India, from the current 240,000 units to 300,000 units. (January 7, 2012)