Maruti Udyog Ltd has obtained Suzuki Motors clearance for the dieselisation of the Zen. The diesel version of the Zen will be launched this year, disclosed company sources.
The company has signed a supply contract with PCM of France, a subsidiary of French auto-maker Automobiles Peugeot, for diesel engines primarily for the 993cc Zen. The supply contract is effective from January 1998 and is valid for three years.
The contract contains a renewal clause at the mutual convenience of the two companies after three years.
The contract was signed last week by Maruti Udyog after it received the go-ahead from Suzuki Motor, marking the resolution of one of the disagreements between the two companies which flared up after the start of the legal battle over the appointment of incumbent Maruti Udyog managing director RSSLN Bhaskarudu.
The contract has now been sent to Suzuki Motor for its formal approval, and for a separate back-to-back agreement with the Japanese partner, which is also the technical licensee for all models manufactured by Maruti Udyog Limited.
The plan to introduce diesel versions of Marutis various models, including its flagship 800cc car, had earlier come under a cloud after Suzuki Motor got embroiled in a bitter battle with the government of India, its equal joint venture partner in Maruti.
