The Union Budget 2012-13 that announced unchanged prices of diesel and taxes on diesel powered cars has provided a catapult in production of diesel cars that is been witnessing rising demands in the Indian auto market. The country’s leading auto major, Maruti Suzuki India is planning to incur a developmental investment of Rs. 2600 crore for the establishment of a new diesel plant and an R & D centre by the year 2014.
The auto giant is strategically aiming towards setting up of a new diesel plant at its existing production facility located in Gurgaon with an investment of Rs. 1700 crore to reach an output level of 3 lakhs diesel engines per annum.
The company is also taking into account a Research & Development (R & D) centre build up at Rohtak at an additional expenditure of Rs. 900 crore.
At the Board of Director’s meet, Mr. R C Bhargava, the Chairman of Maruti Suzuki India was quoted as saying, "We are going to invest Rs 1,700 crore to set up the diesel plant, which will be constructed inside our Gurgaon manufacturing facility. This will be a brand new unit and will be owned by the company."
He further added, "The board has also approved an additional investment of Rs 900 crore to set up various facilities, including testing for emission and safety. This will be over and above the Rs 1,500 crore earlier announced to set up the test track."
Even other leading automotive companies are deliberating a shoot up in their investments to upgrade the manufacturing capacity along with greater investment in technological advancements to ensure greater stake in the increasing diesel car demand.
