Its official, the Italian car maker will supply the Diesel Engine of Indian to Maruti Suzuki.
In a move that would help Maruti Suzuki meet the high demand for the diesel versions of cars such as the Swift and Dzire, the carmaker has tied up with Fiat for sourcing one lakh diesel power plants annually over three years.
The move will help improve languishing monthly sales volumes and reduce waiting period on most Maruti models. Over the past year, Maruti has been unable to increase its own capacity for diesel engines, even as demand has significantly shifted in favour of diesel cars because of a lower ownership cost.
“Fiat and Suzuki Motor are continuing to expand their existing fruitful long-term business relationship. The parties have reached a further agreement for the supply of Fiat’s 1.3L MultiJet 75hp BS-IV Small Diesel Engine produced under licence by Fiat India, the joint venture between Fiat and Tata Motors, to Suzuki’s affiliate company Maruti Suzuki,” an official statement said.
Maruti’s affiliate company Suzuki Powertrain also makes similar 1.3-litre diesel engines for its models, with a capacity of 20,000 a month, which is being expanded to 25,000.