Maruti Suzuki India is in the process of considering all available options and is likely to take a decision on the production of diesel engines by May 2012. Since the Budget 2012-13 has dispelled the fears of an additional tax on diesel cars, the automaker is planning to proceed ahead with its plans to set up its own diesel engine unit at its Gurgaon plant.
With the demand shifting from petrol run cars to diesel cars due to better fuel efficiency and lower cost of diesel fuel, Maruti Suzuki is facing a shortage of diesel engines for its car models. It has been sourcing its diesel engines from Suzuki Powertrain India and Fiat India but now it needs to ramp up diesel car production in order to meet the increase in demand.
According to Maruti Suzuki India Managing Director Mr. Shinzo Nakanishi, the company needs to consider and evaluate the question of compromising petrol engine production for diesel engines and take a decision.
