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Maruti’s order for 1 lakh Multijet diesel engines per year puts Fiat in top gear

Fiat India that has not been so busy in producing cars will be siphoning its resources in producing diesel engines for Maruti. The Tata owned car maker has recently entered into a deal with Maruti India following which it will be supplying one lakh diesel engines per year to India’s largest car maker. Where the deal marks popularity of Fiat diesel engines, it will also be boosting Fiat’s operations in India. Maruti has entered into a deal with Fiat in order to streamline the supply of its hatchback Maruti Swift and the Maruti Swift Dzire sedan. Notably, Maruti has suffered losses in 2011 due to strike and delay in delivery of its cars in India.  

The pact between Maruti and Fiat is not new and Maruti already had a tie up with the latter and under the license it could produce FIAT engine at its plant. In order to boost the production of its cars, Maruti has asked Fiat to supply completely built engine units so that it could save Maruti’s time. The largest car manufacturer had to take such as decision as it had suffered a lot of production shortage of diesel engine at its Manesar plant due to the intermittent strikes throughout 2011.  

Where the pact is a good news or Maruti, it is good news for Fiat as well as the extra supply of engines will put the later in full force and thus Fiat will be producing diesel engine utilizing the full capacity of its Ranjangaon near Pune plant. Besides, this there is good news from Tata front as it also plans to produce more cars and so it will also be in need of more engines from Fiat. The production will be reaching to 100% from the current 70 percent.

Notably, Fiat produces 1.3L diesel engine and 1.4L petrol engines for Maruti. As per the deal, Fiat will be supplying 1.3L Multijet 75bhp engines to Maruti. Apart from Fiat and Maruti cars, this engine also powers Tata Indica Vista.