Auto makers Fiat and Suzuki Motor Corporation today said they have reached an agreement to supply Fiat diesel engines to India's largest car company Maruti Suzuki.
"Fiat India Automobiles [FIAL] will supply up to one lakh 1.3 litre MultiJet 75hp SDE engines per year to Maruti Suzuki India [MSIL] starting from January 2012 for a period of three years," a joint statement said.
The engine will be installed on Suzuki branded vehicles produced in India by MSIL for the local market, it said.
The Fiat engines made under licence by FIAL -- the joint venture between Fiat and Tata Motors -- will be produced at FIAL's Ranjangaon plant near Pune in Maharashtra.
"The production for MSIL will start in the fourth week of January," the statement said.
These volumes will be in addition to the 1.3L MultiJet SDE engines already licensed by Fiat and manufactured by Suzuki Powertrain India, it added.