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Maruti to build new diesel plant in Gurgaon, India

Verner Brown Published 24 January 2012

Indian carmaker Maruti Suzuki India (MSIL) is planning to build its first own diesel engine plant in Gurgaon, India.

A top Maruti official was quoted by Business Line as saying 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 official said.

The Indian carmaker is planning to initially invest around INR10bn ($195.9m) for a production capacity of one lakh diesel engines per annum.

The company said that the new facility will help in meeting the sudden increased demand for diesel cars and reduce its dependency on Suzuki Powertrain for diesel engines.

The work on the proposed new facility is expected to begin after the 2012 budget.

Maruti has also signed a deal with Fiat India, under which Fiat will supply one lakh 1.3-litre multijet diesel engines for the next three years.