Maruti may reduce Fiat's 1.3-litre 'multijet' engine supplies

We all know that Maruti Suzuki, India's largest carmaker source Fiat's multijet engine, which power its most successful cars. However, media reports suggest that the company plans to reduce its diesel engine supplies from Italian carmaker by about 50 per cent. It is also said that the regular dip in the demand for vehicles is likely to be a reason behind such speculations, however, we believe that the company is set to utilise its own manufacturing units to develop a new engine family. In 2011, Maruti signed a three-year agreement with Fiat to source 1.3-litre multi-jet engine from its Ranjangaon plant.

In 2011-12, Maruti sourced around 1 lakh diesel powertrain from Fiat, however the number has come down in last fiscal due to slowing demand. It is also said that the number will further go down by around 40 to 45 per cent this year. Speaking on this topic, Kenichi Ayukawa, managing director and CEO at Maruti Suzuki, said, "We will continue to keep our relationship with Fiat with regard to supply of engines. However, we will see the market situation for the demand and future sourcing of diesel engines from the Italian company".

The recent diesel price hike has narrowed the gap between petrol and diesel prices, which affects the sales of diesel vehicles. Meanwhile, reports are also there that Maruti Suzuki India is planning to import Fiat's 1.6-litre 'mulitjet' diesel engines from Italy. The company is set to launch a new range of SUVs in the Indian car market, and it felt a need of more powerful engines to power these vehicles.

Source: ET