Thursday, 15 December 2011

Suzuki Motor mulls second diesel engine plant in India




Suzuki Motors in likely to set up another Diesel engine plant in India. The investments post the budget next year. The company officials will wait for the decision of government on the hike in excise or any other tax that will make the diesel cars costlier.

As per the officials of the company, if the government increases the excise duty on diesel cars, the company will stick to its current capacity of diesel engines at the current plant. However, if the government does not increases the excise or any other kind of cess on diesel cars, the company will then initiate the process of opening a second diesel engine plant.

The company currently has diesel engines in Ritz, Swift, Dzire and SX4. As per the company, for these models, 80% of the cars sold are diesel. Suzuki Powertrain India Limited (SPIL) which currently manufactures suspension system and engines for Maruti Suzuki is a 70:30 Joint Venture between Suzuki, Japan and Maruti Suzuki India.

However, a senior supply chain official, who did not want to be named said, the final decision will be taken during the Board meeting scheduled on 27th January 2012. Also, during the meeting, decision on whether the capacity expansion should be done at Manesar plant or Gurgaon plant.

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