Maruti Suzuki, India’s largest car manufacturer is planning to launch the first diesel car model in the small car segment featuring a 2-cylinder 800-cc diesel powerplant. The new car is expected to be a replacement for Maruti Suzuki’s small car models such as the A-Star and the Zen Estilo.
The new small car equipped with a diesel engine has been code named ‘YL7’ and is expected to become the smallest and the cheapest car in India with a diesel fuel option. The move by the Japanese carmaker is being seen as a strategy to increase volumes in the entry level segment in the auto industry amid sluggish sales and slow economic activity.
The new small car will also be exported to foreign auto markets and will be renamed and sold as the new Alto.
Maruti Suzuki may position the new small car with the diesel option against the Nano diesel small car by Tata Motors. Tata Motors is also in the process of developing a diesel version of the Nano to increase its share in the small car market in India.