Maruti Suzuki India Approves Rs. 1700 Crore Diesel Engine Plant In Gurgaon, Rs. 900 Crore R&D Center In Rohtak, Haryana


Soon after the Indian Union Budget 2012-13 the air of uncertainty about special tax on diesel cars has cleared and this has given a big relief to the Indian automobile industry as it could have turned things around in a big way for diesel car demand in India. With the prices of petrol and diesel being more far apart than anytime in the past, demand for diesel cars is on a rise in India. This is causing a lot of waiting period for diesel cars in India especially by automobile majors like Maruti Suzuki and Hyundai India. To overcome these constrains, both Maruti and Hyundai have planned for diesel engine plants in India, but due to the uncertainties in budget over proposed additional taxes on diesel cars, these expansion plans were on hold. Since there is no such increase as per the Indian Union Budget 2012-13 in India, both Hyundai and Maruti have give green signal to the Diesel engine plant development in India. We recently reported Hyundai Motors India is back on its Rs. 500 Crore Diesel Plant Plan in India. Recently, on a board meeting of Maruti Suzuki India on 24th March 2012, it has been decided to go ahead with a two-phase development of Maruti Suzuki Diesel plant in Gurgaon with a total investment of Rs. 1700 crore which will include an initial investment in phase one of Rs. 950 Crore and develop an engine capacity of 1.5 Lakh diesel engine units by 2013 which will increase in phase two to 3 Lakh diesel engine units by 2014.


image – Maruti 1.3 Litre Multijet Diesel engine

Apart from the diesel engine plant in Gurgaon Haryana, Maruti Suzuki India will also invest Rs. 900 Crore in its R&D Center in Rohtak Haryana for development of future technologies for Maruti Suzuki cars in India.

In an official statement by R C Bhargava, chairman, MSIL:

Petrol car sales have declined by 15 per cent in the current financial year. In the coming year, we are trying to bring down this decline to six per cent, but still we will be selling about 50,000 petrol cars less. We currently have 40 per cent of petrol engine capacity lying idle at the Gurgaon unit.

Till the time the diesel engine plant by Maruti Suzuki comes to its full capacity, Maruti will continue to source 1 Lakh diesel engines every year from Fiat as per the agreement they signed during the end of year 2011. The deans of diesel car still stands strong in India, but with deregulation of diesel fuel prices in India, which is expected to happen in coming one year, the diesel engine car demand is expected to soften. To see more details, check out our detailed analysis here – Does It Make Economical Sense To Buy Diesel Car Over Petrol Car In India?

For more updates, sign up for our free email newsletter and you can also catch up the latest updates by liking our official Facebook Page.

via – BS

Check out more-

Why Maruti Suzuki Is Waiting To Set Up Second Diesel Engine Plant?

Hyundai India Resumes On Its Diesel Engine Plant In India

Does It Make Economical Sense To Buy Diesel Car Over Petrol Car In India?

Maruti Suzuki India News

Love to read our updates? Get them via Email for FREE. Limited time offer, click here to subscribe.


  1. […] I am not sure how would you react to this news, but it surely is a big deal that Maruti Suzuki is taking this huge decision to move its car assembly operations out of Gurgaon, Haryana plant and plans to move its operations to Mehsana in Gujarat. The Gurgaon facility will continue to produce engines and the car assembly lines will be converted to engine assembling and ancillary units. The Manesar plant will continue to assemble cars with more modernized robotic assembly lines, while the manual car assembly lines of Gurgaon will be shut down in phased manner. The Gurgaon plant will continue to make petrol engines which currently has a capacity to produce about 12 Lakh petrol engines per year. Apart from this, as reported recently, Maruti will develop Diesel Engine plant in Gurgaon facility itself with Rs. 1700 crore investment to…. […]

  2. […] Maruti has already allocated huge funds for investment in ramping up its diesel plants by investing whooping Rs. 1700 Crore and in the years to come Maruti will start car assembly in Gujarat as well to keep up with the growing domestic and exports demand for Maruti Suzuki cars. With dieselization of the Indian car market, these steps will help Maruti maintain its leadership position in Indian car market. We will keep you posted on the latest updates from Maruti Suzuki, stay tuned. […]