Maruti Suzuki, India’s largest carmaker is witnessing an increase in the demand for diesel powered cars and is of the opinion that it could lead to a fall in the sales of petrol cars. According to Mr. I.V. Rao Managing Executive Officer (Engineering) Maruti Suzuki India, the increase in demand for the diesel cars is attributed to the higher fuel efficiency and longevity they offer apart from the lower price in comparison to petrol.
The company is currently engaged in expanding its diesel engine manufacturing facilities to keep up with the increase in demand for diesel cars in India. Mr. Rao stated that the company has only one diesel engine sourced from the Italian automaker Fiat through an agreement for 3,00,000 diesel engine units by 2014.
In the fiscal 2011-12, the company witnessed a decline of 15 percent in its sales of petrol cars and an increase of 35 percent in demand for its diesel cars. The company feels that this trend will continue in the fiscal 2012-13 and hence has taken the decision to increase its diesel engine manufacturing capacity.
The company also views potential for the small-sized diesel engines which can be used in small cars such as the WagonR.