An announced has already made by Maruti Suzuki Company that they are going to launch new diesel powered cars and simultaneously they are not sure about the establishment of the new plant in Gujarat. Many new vehicles have been launched and will be launched by the company hence it is essential for the company to expand their manufacturing plant. Hence, the decision is taken by the company to establish a new plant in Gujarat. Mr Shinzo Nakanishi, MD & CEO, Maruti Suzuki India, said: “Our market share has slipped to 40 per cent in 2011. This was due to slowdown in the industry and lower sales of petrol models compared to diesel car production.” Demand for diesel-powered cars has increased exponentially over the last few months. Maruti Suzuki wants to capitalize on this demand, and launch new diesel powered cars for car buyers in India. The decision of expanding the manufacturing plant in Gujarat is taken by the company when the Indian auto industry was highly on the growing rate of 18 percent. However, things have been changed today. Many things such as high interest rates and high fuel costs have greatly affected the purchasers of car in India leading to decline in the growth of car market in India. A new deal has been fixed by Maruti Suzuki company with Fiat Auto India, which tells the latter will deliver almost 100,000 diesel engines yearly as compared to the former that will be increased in future to nearly 300,000 units yearly till the year 2014. Maruti Company has also planned to manufacture their own diesel engines for their newly launched cars. Presently, Fiat powered 1.3L diesel engine is provided by different models of the Maruti Company such as Swift DZire, Ritz, SX4 and Maruti Suzuki Swift. At the launch of their new mid-sized sedan, Swift DZire, Mr I V Rao, Managing Executive Officer, Maruti Suzuki India, said: “We do have plans to go to Gujarat and preliminary talks have been already held with the state government. However, nothing has been decided on when and how much land will be acquired there. The matter has not been placed before the board for approval yet.”


