Maruti Suzuki India limited is an automobile manufacturer based in India, which is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki. Suzuki motor is in an advanced stage of developing a new 1.5-liter four-cylinder power plant targeting the Indian market. Maruti plans to use both the new engine form Suzuki and the existing fiat multi-jet engine so as to provide customers with wider choices. The first product to use this engine will be the next generation Ertiga.

Since the size of the engine is 1.5-liters, they will not have to pay the higher excise tax levied by India thereby reducing their costs. Maruti being India’s top car maker by volume will make huge amount of revenue from the sale of diesel cars. India is one of the fastest developing nation with a very high population which provides a very huge market for car companies.The current high rise in the price of petrol has led the people to buy more diesel cars. Also diesel cars provide more mileage which is a major consideration for most Indians. If Suzuki motors is successful in developing the new engine, then Maruti will definitely see an increase in their sales and revenue.

Here is an short interview with Kenichi Ayukawa, Maruti’s MD: https://www.youtube.com/watch?v=wkd5MsEp_98