Maruti to up diesel engine capacity

Car major Maruti Udyog will expand its diesel engine manufacturing capacity to 300,000 from 100,000.

On the sidelines of the Symposium on International Automotive Technologies 2007 (SIAT 2007) today, Maruti Managing Director Jagdish Khattar said the capacity expansion would entail an outlay of Rs 2,500 crore.

Khattar did not, however, give any further details about the project. "It is being finalised," he said.

The company commissioned its diesel engine manufacturing line in September 2006 to make 1.6 litre engine for which it sourced technology from Fiat. The engines were Euro III and Euro IV compliant, he said.

The first Maruti model to run on a diesel engine will be the Swift and the variant would be launched next week. The price would be announced at the launch.

Asked whether other Maruti models would have a diesel version now, Khattar said any further moves would be decided after the company settles down in diesel engine manufacturing.

"Our aim is not to cash in on the price difference between petrol and diesel. We want to do well even when this difference disappears. So we have sourced the best possible technology," Khattar said.

"No impact of Tata car"

Asked whether the Rs 1 lakh car from the Tatas will impact the Maruti 800 sales, Khattar said the Maruti 800 was a favourite with those who wanted to upgrade from a two-wheeler to a car.

"If there is a car between a two-wheeler and the Maruti 800 we will benefit from it as this upgradation will become faster," he quipped. He ruled out the possibility of any reduction in the Maruti 800 price as a reaction to the Rs 1 lakh price tag of the Tata car.