Maruti Suzuki to increase diesel engine output in Gurgaon by investing Rs 2000 crores

Maruti Suzuki India Limited (MSIL) today has announced that they would be investing Rs.2000 crores for the manufacture of diesel engines at their facility based in Gurgaon. Increased demand for diesel engines is being felt in the Indian auto industry and a number of auto manufacturers have announced their foray into diesel engine production.

MSIL have noted increased demand for their Swift and Dzire models and hence will be manufacturing 1.5 lakh diesel engines for these 2 vehicles in 2012 as per Shashank Srivastava, Chief General Manager – Marketing at Madhya Pradesh after marking the entry of the new launched ErtigaLUV into the Indian auto sector.

During 2011-12, 50% more diesel engined cars were sold. Thus demand was higher than supply which led to long waiting periods. Shortage of diesel engines and labor problems faced by the company at the end of 2011 led to extended waiting periods for both Maruti Swift and Dzire.