Maruti Udyog Ltd is likely to roll out a series of diesel-powered cars after its Japanese parent, Suzuki Motor Corporation, finalises its plans to set up a diesel engine plant in the country.
Jagdish Khattar, managing director of MUL, who was in Ahmedabad on Thursday to launch MUL's 'True Value' shop, said that the company will come out with more diesel versions as the new engine plant will bring the cost considerably down. At present, almost all the diesel cars launched by MUL use imported engines.
"Maruti was basically operating in the petrol car category, which is our strength. But the diesel car market has been growing rapidly and is now 20 per cent of the entire car market in the country and we might as well give a push to diesel cars," said Khattar.
He ruled out any possibility of launching a diesel version of the popular Maruti 800. "Maruti 800 is too small a car to have a diesel engine, but higher models could have diesel engines.
The Maruti Zen, along with other higher models are available in diesel versions. But their sales volumes are much lower than the petrol versions."
To begin with, the 1.3 litre hatchback, Swift, is likely to be available in both petrol and diesel versions. It will priced competitively to the Hyundai Getz, introduced recently in the market.
Swift will be launched in 2005-06 fiscal year. Once the new diesel engine plant is commissioned, Maruti will cut prices of diesel cars, Khattar added.
"It would have been ideal to enter the diesel car segment more forcefully a little earlier, but it is never too late. There will be more diesel versions in the market from the Maruti stable," said Khattar.
MUL produced 4.70 lakh vehicles in the last fiscal year and aims to cross the 5 lakh-vehicle mark this year. Exports for the first six months of the year stood at around 23,000 units.
Suzuki Motor Corporation is expected to invest Rs 410 crore (Rs billion) in the new diesel engine plant, which has a capacity to produce 100,000 units. The new plant is expected to go on stream within a couple of years.
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