Suzuki has decided to increase the diesel engine production in India from the current 240,000 engines per year to 300,000 engines per year. This is in addition to the 100,000 engines per year supplied by Fiat to Suzuki. The engines made by Suzuki are also based on Fiat's multijet technology for which Suzuki is paying to Fiat.
The demand for diesel cars in India has increased exponentially in recent years thanks to government's policy of subsidising diesel fuel and rapid increase in petrol prices. Some of the diesel cars made by Suzuki like Swift and Dzire can be owned only after waiting for a considerable time of 4-5 months.
Suzuki is even considering establishment of one more engine plant in Gurgaon near Delhi for production of diesel engines. It was waiting for the budget announcements as it was anticipated that government would increase the excise duty on diesel cars to discourage their demand. However, with no such step taken in the Budget, Suzuki and other diesel car manufacturers are now considering expanding their diesel car production.
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