November 30, 2011

Maruti Suzuki to buy Diesel Engines from Fiat

In a significant development, Maruti Suzuki has decided to buy diesel engines from Fiat SpA to reduce the long waiting period on some of the top models.

Currently, Maruti gets all diesel engines from Suzuki Powertrain India Ltd. Suzuki Powertrain will make 300,000 diesel engines by March 2012, as against 240,00 last year.

Fiat India, which is a joint venture between Fiat SpA and Tata Motors, has the capacity to produce 300,000 diesel and gasoline engines in a year.

Maruti will get about 100,000 diesel engines from Fiat in a year. The Tata Motors is also using the Fiat engine. Hopefully, Hyundai also takes a cue and buy more diesel engines to reduce the long waiting period for its customers, who are compelled to wait for 5-6 months to get the top models such as Verna Fluidic.

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