Maruti Suzuki India has announced that it is considering setting up a higher capacity of diesel engine in order to achieve and sustain total market share of 40 percent in the Indian passenger car industry. Increasing the number of diesel cars would be necessary for increasing the market share of the company, stated Mr. R C Bhargava Chairman Maruti Suzuki India.
In the period from April to July 2012, the Japanese automaker’s share in the India auto market stood at 38.61 percent according to the data by the Society of Indian Automobile Manufacturers. Commenting on the diesel engine manufacturing plans in India, Mr. Bhargava stated that the company will have the total diesel engine production capacity of 7,00,000 units annually by the year 2014.
With a price gap of about Rs 27 per liter in the prices of diesel and petrol, diesel being cheaper, the demand for diesel cars has been growing while that of petrol cars is declining. Maruti Suzuki which has a mixed portfolio of both diesel cars and petrol cars has been witnessing higher sales in the diesel versions of its car models. The decline in sales is majorly affecting the small car segment of the company which includes the WagonR, the Alto and the Alto K-10 which have no diesel engine alternatives.