With an aim to meet the rising demand for diesel vehicles, Maruti Suzuki India Ltd. (MSIL) on Tuesday announced
merger of a diesel engine manufacturing company with itself.
"We will take diesel engine capacity to six lakh from the current three lakh by mid-2013. The merge will provide cost-reduction and allow production planning under a single management," Shinzo Nakanishi, managing director and chief executive officer, said after the company's top management at its board meeting approved the merger of Suzuki Powertrain India Ltd. (SPIL) with Maruti Suzuki.
The company is currently using only 70 per cent of its daily petrol engine manufacturing capacity, as
petrol powered car sales have been severely hit.
Nakanishi said: "The gap between petrol and diesel has increased significantly. The diesel car penetration in the market went up to 47 percent last year. In May our diesel cars penetration got up to 55 percent."
SPIL is a subsidiary of Suzuki Motor Corporation, Japan. The company supplies diesel engines and transmission systems to Maruti Suzuki which also holds 30 per cent stake in the firm.
With IANS inputs 
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