Latest Car News in India

Thursday, January 19, 2012

By Manoj Kumawat

Fiat inks deal with Maruti: to supply one lakh diesel engines annually

Maruti India seems to be focusing more on diesel cars. In a major move, the biggest Indian car maker has inked adeal with Italian carmaker Fiat for the supply of diesel engines. Notably, Maruti has been reeling under crisis lately due to the workers agitation at Manesar plant and with the supply of diesel engine by Fiat, the car maker will be able to cut short the waiting list for Maruti cars such as Maruti Swift an Maruti Swift Dzire tremendously.

Fiat Linea Pictures

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As per the agreement, Fiat will be handing over one lakh diesel engines to Maruti. These will be 1.3L multijet engine which are quite impressive both on performance and mileage as well and has evolved as one of the most frugal engine. The agreement is for three years and following which Fiat will be supplying ne lakh engine each year. As per sources the delivery of Fiat sourced engine will begin in the last week of this month. The engines will be produced at the Ranjangaon (Pune) facility of Fiat India which is in JV with Tata Motors. Notably, reports of such an agreement were around for quite sometime and it was getting delayed due to some pricing issues between the two.

Maruti Swift Pictures

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The greatest benefit of this deal will be to the 1.10 lakh customers who are in the waiting list for hatchback Maruti Swift. Besides, after this deal Maruti will be able to cross the production of Maruti Swift to 20,000 cars in a month. Also, it will be a much sigh of relief for Maruti for the upcoming New Maruti Swift Dzire as availability of diesel engine will help delivery of the new Maruti car on time. In total, Maruti will be able to produce more cars per month with the availability of Fiat multijet engines.

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