With a view to raise the output of its Swift hatchback, Maruti Suzuki has entered into a deal with Fiat where Fiat will supply the company with 1,00,000 diesel engines every year effective from January 2012. Until now, Maruti Suzuki did not have the capacity to meet the rising demand for diesel cars which is a result of the rise in petrol prices.
Moreover, the company has taken advantage of the high demand and increased the prices of its diesel cars by Rs. 10,000. Currently, the company has a long waiting list for the diesel cars with waiting period up to 3 months. Moreover, Maruti Suzuki is facing tough competition from global cars manufacturers and its market share is gradually sliding down.
The company is now in the process of increasing its manufacturing capacity to about 17,50,000 units per annum. A new manufacturing plant is being planned in Gujarat by Maruti Suzuki and will commence work on the same according to the demand in the Indian automobile industry.