Maruti to reduce diesel engine exports to Hungary, focus on India

Increasing price of petrol has given rise to the demand for cars powered by diesel engines. The country’s largest carmaker- Maruti Suzuki India, has decided to tackle by reducing  their diesel engine exports to Hungary, over the next six months which will help the automaker to free up about 35,000 to 45,000 Maruti Swift Diesels for the Indian market.

The company plans to increase production of the Swift to 18,000 units a month from 1,000 units earlier to cut short waiting period, in view of increasing competition from new entrants, such as the Ford Figo, Toyota Liva and Volkswagen Polo, besides Honda’s upcoming Brio.

The diesel engine facility of the company in Manesar manufactures around 2.8 lakh engines per annum, however it needs around 4 lakh units to sufficiently meet the Indian market needs. Pareek added that the additional engines that they will get after decreasing their exports, will be used for the Swift car in India.

2011 New Maruti Swift

“We are reducing on export of diesel engines significantly to cater to the domestic demand. Currently we export about 35,000 to 45,000 units every year to Hungary. We will reduce it to almost negligible levels in the next six months. The additional engines that we get (after cutting exports) will go for the Swift in India,” Mayank Pareek, Managing Executive officer (Marketing and Sales), Maruti Suzuki India (MSI), said.

Pareek however did not disclose the price saying it will be announced at the formal launch on August 17, but sources said it will be about Rs 30,000 more than the existing ones, which starts at Rs 4.09 lakh and goes up to Rs 5.38 lakh (ex-showroom Delhi).

MSI has invested over Rs.550 crore on the development of the new Swift. It will be manufactured on an all-new platform. The new Swift will be powered by 1.2 litre K-series petrol engine and 1.3 litre Multijet diesel engine.

The car will be produced at its Manesar plant, where unit B will commence operations in September with the production of the new Swift.

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