Maruti Suzuki India to Source Diesel Engines From Fiat
Posted on August 26th, 2011 in Uncategorized | Comments Off
| He, however, did not provide details of the diesel engines that MSI is looking to source from Fiat. At present, MSI manufactures and uses a 1.3-litre diesel engine for it is Swift, DZiRE, Ritz and SX4 models beneath a licence from the Italian auto-maker. Bhargava said due to the huge price divergence amongst petrol and diesel, the demand for diesel variants of models like SX4 and DZiRE has “suddenly shot up much more than what was forecast”. Last week, Bhargava had ruled out making further substantial investments on expanding engine production in the absence of a clear roadmap on how the diesel prices would be in future. He had said MSI has been unable to determine on whether to invest on increasing diesel engine capacity or that of petrol engines. “We have a big problem in terms of absence of fuel (pricing) policy… While the demand for diesel has increased in the recent past due to the increased petrol price, I am not sure how long will this stay like that,” he had said. Bhargava, however, said MSI is looking to heighten output at it is existent facility at Manesar wherever possible. The company’s diesel engine plant at Manesar presently formulates 2.8 lakh engines per annum. Earlier this month, MSI had stated that it was drasti reducing exports of diesel engines to Hungary to cater to domestic demand. It exports when it comes to 35,000 to 45,000 units each year to Hungary, but is looking to reduce it to almost negligible levels in the next six months. |
