A lot of car manufacturers had themselves glued to the Budget 2012 mainly with regards to the diesel tax. The good news is that the government has spared diesel tax and now most manufacturers are in a hustle to set up diesel engine production plants to make the best use of this and roll out as much diesel cars they can this year. Maruti Suzuki for sure is keen on getting their own diesel plant set-up. The company has announced that in the coming two months they would decided on setting up a diesel engine unit at its Gurgaon unit. For the moment Maruti Suzuki is sourcing
diesel engines from Suzuki Powertrain India Ltd (SPIL) and Fiat India. However is the company has to to increase the production of diesel cars they have to look up at setting their own diesel unit to roll-out more numbers. Maruti Suzuki had been thinking about the setting up a diesel unit at their plant for quite sometime; however had put it on hold awaiting clarity over tax on diesel and a clear policy on its pricing. Maruti Suzuki has made it clear that it is not an issue of infrastructure. The company already has the the engine manufacturing infrastructure at Gurgaon. Its all a matter of whether the company should compromise on petrol for diesel engines. Your thoughts?