India's largest carmaker will boost its diesel car production to cater to the growing demand for diesel vehicles in the country.
Maruti Suzuki will invest Rs 1,700 crore to set up a diesel engine plant inside its Gurgaon facility. The
diesel plant will have an annual production capacity of three lakh units.
Demand for diesel cars have soared in India as it is sold at subsidised rates, much lower than petrol prices. Due to its cheaper running cost, some of Maruti's diesel models carry a waiting list in excess of six months.
Maruti has been sourcing its diesel engines from Suzuki Powertrain India and recently from Fiat India. Suzuki Powertrain India is also ramping up its diesel engine capacity to 3 lakh units per annum from 2.4 lakh units.
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