Firms set to ramp up diesel car production

Discussion in 'Economy & Infrastructure' started by Yusuf, Mar 25, 2012.

  1. Yusuf

    Yusuf GUARDIAN Administrator

    Mar 24, 2009
    Likes Received:
    Id have to look at buying a diesel car myself.


    NEW DELHI: The clamour for diesel cars is growing stronger after the Budget did not impose any additional tax on the vehicles. After Hyundai, that is all set to announce a diesel engine plant in India, it is now the turn of Maruti Suzuki to go in for a major expansion as the country's biggest carmaker said it will invest Rs 1,700 crore to set up a 3 lakh-unit diesel engine plant within its Gurgaon facility.

    The company that has been shoring up diesel engine numbers said that demand for diesel vehicles is expected to remain strong as the vehicles offer a lower running cost compared to petrol cars, that are on the decline. "The demand pattern has shifted from petrol to diesel cars and we expect the trend to continue even in the new fiscal," Maruti Suzuki Chairman R C Bhargava said.

    The new diesel plant at Manesar will churn out 1.5 lakh engines annually by the middle of 2013 while going into full output of 3 lakh by 2014. Maruti currently gets its diesel engine supply from group company Suzuki Powertrain India Ltd (SPIL) that has a capacity of 3 lakh engines per year. The company has also managed to stitch up an alliance with Tata-Fiat JV, Fiat India Pvt Ltd, that will supply 1 lakh diesel engines annually for the next three years.

    "We expect sales of our diesel cars to go up by 1.5 lakh units next fiscal, just as petrol volumes will go down by 50,000 units. Overall our volumes are expected to go up by 10%, led by diesel demand," Bhargava said. Maruti is not the only company going in for a diesel blitzkrieg. The price advantage diesel cars offer over petrol variants has seen their demand shoot up, creating a race amongst carmakers to expand capacity. And as the Budget did not impose any additional tax on diesel cars - as was even demanded in some quarters of the government - companies are now on an overdrive to add diesel engine capacity.

    Hyundai is close to announcing its first diesel engine plant for India and a decision is expected in the coming weeks. Other companies boosting diesel engine supplies are Volkswagen, Toyota, General Motors and Ford.
  3. pmaitra

    pmaitra Moderator Moderator

    Mar 10, 2009
    Likes Received:
    EST, USA
    There are fuel cost considerations, vehicle price considerations, and also how much long distance driving you will do.

    Coming to driving experience, I say you will love the torque and the confidence it brings to the driver. Least of all, less frequent gear changes. Take it from a proud owner and driver of a diesel vehicle for the past more than two years.
  4. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

    Nov 28, 2010
    Likes Received:
    My problem is, I don't have any options other than Diesel vehicles. Because I love SUVs and I would never buy a Sedan, no matter how attractive.

    And Petrol SUVs are a rarity. So, for me, its Diesel all the way. :thumb:
  5. karn

    karn Regular Member

    Apr 17, 2014
    Likes Received:
    You guys are replying to a 3 year old topic . Already firms are increasing production of petrol cars after the de regularization of fuel.

Share This Page