Maruti to lessen waiting period for diesel engines by buying from Fiat

Maruti Suzuki India Ltd. said that starting January 2012, it will start buying diesel engines from Fiat SpA’s local unit. The move is aimed at reducing the long waiting period for some of its best-selling models. “We’ll gradually get about 100,000 engines a year from Fiat,” Maruti Chairman R.C. Bhargava said. Suzuki Powertrain India Ltd., a joint venture between Maruti and Suzuki Motor Corp., currently supplies Maruti’s entire diesel engine requirement. Suzuki Powertrain will make 300,000 diesel engines during this financial year through March 2012, compared to 240,000 units last year. The engines are made using Fiat’s technology. Automakers in India are scrambling to meet increasing demands for diesel vehicles because government controls have kept diesel prices down, while sales of gasoline-powered cars are decreasing due to India’s sluggish economic growth. A liter of diesel fuel in India costs Rs40.91 (US$0.77) compared to Rs 66.42 (US$1.27) per liter of gasoline. (November 29, 2011)