Maruti Udyog to stop producing Diesel Cars

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May 19th, 2005 Leave a comment Visited 82 times, 2 so far today

Maruti Udyog to stop producing Diesel Cars

India’s largest automobile manufacturer has decided to exit the emerging hot market of diesel vehicles. They do not currently have any manufacturing unit of diesel engines but they did manufacture diesel versions of Maruti Zen and Maruti Esteem using imported engines from Peugeot. They just recently stopped making the diesel versions of Esteem and now the company decided to give up the diesel variant of the Zen as well.

One of the possible reasons behind this exit is the ending of agreement between the two companies. In addition, Maruti has already announced plans to manufacture their own diesel engines at a new facility in Gurgaon by 2007. The initial producing capacity is expected to be around 1-lakh diesel engines per year.

The company rolled out their last batch of 500 Zen Diesel this month. The decision to stop making diesel cars for the next couple of years would definitely harm the company in the short run considering their has been an increased demands for diesel powered cars in the recent years. Hyundai is selling their CRDI Engine Accent like hot cakes and even the luxurious Skoda Octavia and the Mercedes sell bulk of their cars in diesel variant. Of course, Indica Diesel is a best seller in itself.

Another reason for Maruti not interested in continuing its dealing with Peugeot was that the engine was no longer compliant with the recently announced Bharat Stage III emission norms from April this year. Maruti will have to hurry otherwise the competition will take over from Maruti in the diesel car segment in the budget market.





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6 Comments

  1. #
    Mrinal
    May 20th, 2005 at 10:00 am

    Maruti was sleeping for so many years now it will sleep for the next two years

    Reply to this comment
  2. #
    Gagan
    August 22nd, 2005 at 4:15 pm

    Okay they will take some time to make diesel engines for Esteem and Zen, quite understandable…but why dont they bring Diesel Swift to india for the sake of heavens, they’ve already launched it in europe and the cars give an unbelievable mileage of 28 KMPL.

    Reply to this comment
  3. #
    Sanjiv
    October 16th, 2005 at 11:21 am

    It seems the management is hibernating. I wanted to go for a maruti swift but as the fuel prices are soaring i guess I will have to settle for some other brand which offer me a good diesel car…KNOCK KNOCK MARUTI !! U GUYS LISTENING??

    Reply to this comment
  4. #
    Girish Singhal
    January 4th, 2006 at 9:49 am

    Yes Maruti shud expedite the manufacture of diesel engine and (dont know what exactly the agreement wid peugeot was) shud have already done it as it was known fact much earlier that Bharat Stage III will come and diesel fuel economy will drive competition…. Now see people have to content with Indica Diesel(in that range) with no choice at all…… Are we Indians third grade citizens of this earth who donot deserve good things???????????????????????????

    Reply to this comment
  5. #
    jasdeep singh
    March 21st, 2006 at 10:06 am

    The performance of ZEN DIESEL was excellent but i was sad to know that the company has discontinued the model,and the buyer today have no choice,and people are eagerly waiting for the crdi verson ,because the initial cost of car dosent matter as the running cost matters

    Reply to this comment
  6. #
    bader radi
    December 7th, 2006 at 12:43 pm

    dear sirs

    we are a company in kuwait , with several affiliated companies , one of our affiliators invented a new method which cheaper and more environmental friendly , to produce ulsd in fact only .035% sulphur , looking for intersted parties to commence producing , the invention is already patented internationaly
    looking forward to hear from you

    Reply to this comment

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