Maruti Suzuki, India’s largest car manufacturer has asked its parent company Japanese carmaker Suzuki to develop small diesel engines to power its volume selling small car models. The carmaker expects to regain its lost market share in the Indian auto industry which lies below 40 percent in 2013, down from 45 percent in 2011.
According to Mr. Kenichi Ayukawa Managing Director and CEO Maruti Suzuki India, the carmaker has asked its parent company to look into developing small diesel engines. It’s banking on the trend that diesel cars have a higher demand, while Maruti has a larger share in the petrol cars segment.
Mr. Ayukawa also stated that the company needs to build its own engines as opposed to sourcing them for car models such as the Swift and the Ritz from the Italian automaker Fiat.
The carmaker is witnessing a revival in car sales amid sluggish market conditions and expects a growth of 4-5 percent.