Maruti Suzuki to Source Diesel Engines from Fiat

Maruti Suzuki India, the country's largest car maker, will source diesel engines from Fiat due to the absence of a clear fuel pricing policy. This decision comes after Chairman R C Bhargava stated that the company cannot make big investments in powertrains without knowing how diesel prices will be in the future. As a result, Maruti Suzuki will be sourcing diesel engines from Fiat, with the homologation process expected to take anywhere between two to three months.

Key Takeaways:

• Maruti Suzuki India will source diesel engines from Fiat due to the absence of a clear fuel pricing policy.
• The company's Chairman, R C Bhargava, confirmed that they are exploring the possibility of sourcing diesel engines from Fiat.
• Maruti Suzuki will be using a 1.3-litre diesel engine from Fiat for its Swift, DZiRE, Ritz, and SX4 models.
• The company has a big problem in terms of the absence of a fuel pricing policy, which has led to a sudden increase in demand for diesel variants of its models.
• Maruti Suzuki is reducing exports of diesel engines to Hungary to cater to domestic demand.
• The company's diesel engine plant at Manesar currently produces 280,000 engines per annum.
• Maruti Suzuki is looking to enhance output at its existing facility at Manesar wherever possible.

Statistics:

• Maruti Suzuki exports about 35,000 to 45,000 units of diesel engines to Hungary every year.
• The company plans to reduce exports to Hungary to almost negligible levels in the next six months.
• The homologation process of the diesel engine from Fiat is expected to take anywhere between two to three months.
• Maruti Suzuki's diesel engine plant at Manesar currently produces 280,000 engines per annum.

Sources:

• PTI, "Maruti Suzuki to source diesel engnes from Fiat", dated August 22, 2023
• PTI, "Maruti Suzuki to reduce exports of diesel engines to Hungary", dated August 8, 2023
• Maruti Suzuki India, "Press Release on Homologation of Fiat Diesel Engine"