Latest Car News in India

Maruti India could start diesel engine unit at Gurgaon plant soon

Sensing that the future is of diesel cars and that now there is no additional tax on diesel cars in India, Maruti India is seriously thinking of expanding its diesel engine production. The diesel engine production will help boost production of Maruti Swift Diesel and the recently launched New Maruti Swift Dzire. Currently, Maruti is taking the diesel engines from Fiat. A decision on starting a diesel engine production at the Gurgaon plant will be coming in next two months.

Not only Maruti but also the rest of the car makers such as Ford, Tata and Mahindra are all in the process of expanding the diesel cars capacity. However, recently all the plans by these and many other car makers were put on hold as the government was expected to impose a tax on diesel cars. Now that the government has spaced the diesel cars from the proposed tax, all the car makers are busy in giving shape to their proposed plans for India. Notably, if there would have been a tax on diesel cars, Indian Industry could have experienced the strongest of the jolts.

Maruti Suzuki India Managing Director Shinzo Nakanishi has reportedly said in a report that since Maruti India is reeling under severe diesel engine crisis, it will be thinking soon on initiating the diesel engine unit at the Gurgaon plant. Presently, Maruti is maintaining supply of Maruti Swift diesel and New Maruti Swift Dzire with the engines provided by Fiat India. The duo has entered into an agreement lately for the supply of one lakh engine per year. The present capacity of Maruti India is of 2.4 lakh diesel engine units and it hopes to increase it to 3 lakh units soon. Added to it will be one lakh engine by Fiat so it makes 4 lakh engines ready for Maruti. With the consistent supply of diesel engines, Maruti will be able to deliver its diesel cars on time with much waiting period.