The country’s largest car maker, Maruti Suzuki despite the government taking decisions against punitive taxes on diesel run vehicles, the company is likely to set-up a second diesel engine plant in India. Speaking of their intentions, Mr. R C Bhargava, Chairman of Maruti Suzuki India Limited said that once policies regarding diesel is clear, the company is likely to make their investments into setting up this diesel plant but would be waiting to see what the budget had in store where diesel cars were concerned.
At present Suzuki Powertrain India Limited is working at full capacity and judging by rising demand for diesel cars as against petrol ones it was imperative to set up one more unit for the manufacture of diesel engines. Demand for diesel cars in India have gone up in the past eight months due to discrepancies in prices between petrol and diesel. Current prices stand at a difference of rs.25 between both petrol and diesel and this is one of the main reasons for rising demand for diesel vehicles.
The government is likely to levy a tax on diesel cars which will assist the government in bringing down growth of diesel cars which would ultimately lead to reduction on fuel subsidies. Bhargava said that once investments and regulations were in place only then would the company take a firm decision of setting up their second diesel plant.