Saturday, 24 December 2011

Maruti's agreement with Fiat for Diesel engines get approval of JV Partner Tata Motors



Maruti Suzuki's hurdles are getting lesser with the days of this year passing by. We hope the issues get eradicated by the time the new year comes. The year has been full of ups and downs for the whole automobile industry but was worse for the India's biggest car maker, Maruti Suzuki.



Maruti Suzuki launched the New Swift in India but due to the labour down turns, the deliveries could not be made on time. The burdens were further added upon by the increase in difference in Diesel and Petrol, as the bookings for Diesel models kept on burgeoning with the capacity constraints persisting for the carmaker, Maruti. Maruti was in talks with Fiat India to strike a deal for 100,000 Diesel engine per year. The deal had to be approved by the equal JV partner of Fiat, Tata Motors and it has now been reported that Tata Motors officials have agreed upon for Fiat to strike the deal for supplying Diesel Engines to Maruti Suzuki.

Maruti Suzuki currently has a capacity to manufacture 300,000 Diesel engines at its existing facility, along with 100,000 diesel engines now coming in from Fiat, it will definitely reduce the delivery time of Diesel vehicles in India, which are in huge demand these days. As per the company officials, the company would clear the due bookings of New Swift launched by March 2012.

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