The board of Maruti Suzuki India has approved of the auto manufacturer’s decision to set up a diesel engine facility in Gurgaon. With this step, Maruti will no longer be dependent for diesel engines upon Suzuki Powertrain India. Moreover, the company will now be able to move on to its expansion plans for diesel cars with the increasing shift of customers towards the cheaper fuel. According to Mr. R.C. Bhargava Chairman Maruti Suzuki India, the company will invest into the new plant and will go on adding capacity to requirement.
However, there are some changes that have been recommended by the board in the original plan. Among the suggestions is a proposal for the plant to have a model which can be expanded and capacity can be increased when required. It also appears that the new plant will be headed by Maruti and will be separate from the parent company Suzuki.
The new engine plant will entail an investment of approximately Rs. 1000 crore to have an annual capacity of 1,00,000 units and is expected to be up and running by the end of 2012. Until the plant is operational, the company has joined hands with Fiat India for an annual supply of 1,00,000 1.3 liter diesel engines for three years starting 2012.