Maruti Targets Indian Diesel Car Market

10 September 2005

Maruti Udyog, Suzuki’s Indian subsidiary, is targeting the domestic diesel passenger-car market with plans to roll out a line of diesels cars beginning by the end of 2006.

The company is investing Rs 32.719 billion (US$747 million) in a new car manufacturing plant and a new engine and transmission plant. In addition to manufacturing gasoline engines and transmissions, the new engine plant (operated by Suzuki Powertrain India Ltd) has a capacity of up to 300,000 diesel engines per year.

Initial diesel production is targeted at 100,000 units per year.

Suzuki has already announced (earlier post) that it will manufacture the 1.3-liter diesel engine licensed from Fiat and Opel for its new Swift at the Indian plant. As the New Swift is a “world car” and already on sale in India, it seems pretty safe to assume that a number of those new Maruti diesel sales will come from the New Swift.

With the 1.3-liter diesel, the New Swift delivers 51 mpg US (4.6 l/100km) and emits only 122 g/km CO₂.

Tata Motors is the current diesel-car leader in India.