Maruti Suzuki India seems on expansion spree this time. In order to have an overall 40 percent market share in Indian market, company is planning to introduce more diesel cars in its portfolio. With the ever increasing gap in petrol and diesel fuel prices, demand of diesel cars have been surged and that of petrol has gone down, so with an aim to augment the sales and profits, auto group is “examining” having more diesel engine capacity than it has currently intended.

Addressing shareholders during the annual general meeting of the company, Mr. RC Bhargava, Chairman, Maruti Suzuki India said that when rivals are having 80 percent of sales in diesel cars, company cannot adhere to petrol cars manufacturing only. And for capturing 40 percent targeted market share, it need to include more diesel cars and engines, he further added.

Talking about Maruti India’s succeeding plans, Mr. Bhargava reportedly quoted that company is probing the need of more diesel engine capacity in case, if the fuel policy stays same as it is today. By 2014, auto group intends to boast a total capacity of 7 lakh diesel engines in its offerings, he continued.

Presently company is holding 38.61 percent market share in domestic passenger vehicle market and to accomplish its desired plans, the carmaker is setting up a diesel engine plant at Gurgaon with a whooping investment of Rs 1700 crore. Production in this plant will be started next year with an aim to produce an initial capacity of 1.5 lakh engines which would double itself by the year 2014.

Mr. Bhargava, while pointing out the overall market situation said that sales have become lethargic due to domestic and global situations like rupee depreciation and euro zone crisis. Earlier the industry was likely to grow at 10 per cent but it is doubtful now. In order to diminish the impact of forex fluctuations, company has boarded on a drive to reduce imports and expects to see a considerable decline in forex cost of imports in next 2-3 years, he said.

Coming to the plans of introducing diesel engines, Maruti India is likely to merge with Suzuki Powertrain India Ltd which has three lakh engines already available with it.

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