Under pressure to meet the high demand for diesel vehicles, particularly Zen and Esteem in India, Maruti Udyog Ltd has asked the parent company Suzuki Motor Corporation to find an immediate solution for supply of diesel engines.
Following this, the Japanese company is exploring the twin strategy of in-house production and procuring from other manufacturers like Fiat, Opel and Volkswagen.
"My desire is that we should have capacity to produce our own diesel engines," S Nakanishi, a high-ranking SMC official, who is also the chairman of Maruti, told visiting Indian reporters.
Identifying five possible supply sources for diesel engines, he said Fiat, Opel, Volkswagen, Peugeot or Isuzu could be contracted while adding that discussions were on with some international engine makers.
On whether SMC would be working on its own or look for outsourcing, he said, "We can look at both the possibilities simultaneously."
Asked if the discussions with Fiat were in advance stages, he said, "We are talking to them. Suzuki is taking some Fiat engines for its Hungary operatons."
K Saito, director, marketing, MUL, said Maruti has asked SMC to immediately find a solution.
"We want the engines today but negotiations take time," he said when asked as to how long they would be in a position to wait for fructification of discussions.
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