Maruti Suzuki India Limited (MSIL), the largest car maker in the country, is all set to establish a diesel engine plant near its existing manufacturing facility in Gurgaon. This will be company’s independent engine facility and is expected to go operational by the second-half of the next financial year. The new engine plant of Maruti will be having an initial capacity of producing 1.5 lakh engines per annum, which will help the company to bring down the mounting waiting period of its diesel variants of cars. The company is expected to invest a sum of over 1,000 crore to set-up this plant, initially.
While speaking to Business Line recently, a senior official of the company said, “The Board is in agreement that a new diesel plant is necessary for the company to meet the demand for such cars. However, a few details need to be worked on, such as land availability, investment and the size of the plant.”
The company is planning to build this diesel engine plant on modular lines so that the capacity can be expanded at a rapid speed, if required later on. However, a final decision in this regard will only be taken after considering the Government’s policy on diesel subsidy for passenger car segment in the upcoming Budget for the financial year 2012-13.
