Maruti extends its diesel engine contract with Fiat

Considering the increased demand for diesel powered vehicles in the country, Maruti Suzuki India Co., Ltd. has launched its diesel engine purchase agreement with Fiat India, the arm of Italian carmaker Fiat SpA for another three years. Since 2011, ACE manufacturer has been from Fiat's 1.3-liter multi jet diesel engine, which will expire in 2015.

Fiat's drained 1.3-liter engine is the most widely used engine in the country, not just Maruti. Tata also uses the same engine for its indica rice and Manza. Although the swift, swift dzire, dzire tour, Ritz, earthiga and SX4 of Maruti "s are powered by the same diesel engine, the diesel variants of all these products accounted for about 33% (340000 units) of brand sales last year (converted to about 340000 units).

After a sudden increase in demand for diesel vehicles, Maruti agreed to buy 1,00000 engines from Fiat in 2011. So far, Fiat powertrain technology spa has provided 2,00000 diesel engines for the automotive industry in India. In addition, under Fiat's license agreement, Maruti manufactured the same diesel units at Megson's facilities in Megson.

Puneet Gupta, principal analyst at IHS automotive, a sales and market research company, said, "diesel vehicles will continue to agree, given the price gap and better fuel efficiency." "In addition, given the volatility of demand, Maruti provides a better meaning for the source rather than investing in creating its own capacity," Gupta added.

Although Maruti has also prepared its new diesel engine family, the first of its 800cc members will be the company's successful hatchback celerio and the upcoming y9t LCV (light commercial vehicle). To this end, the company also set up a diesel engine plant in Gurgaon, which will provide an additional 15000 units for the new diesel family.