The Hindu Business Line : Maruti to roll out diesel cars by end-2006

UPBEAT about the potential of 25 million two-wheeler buyers in the last five years upgrading to cars, Maruti Udyog Ltd (MUL) today said it was all set to tap this opportunity with an aggressive product rollout plan and would launch diesel cars by 2006-end.

``The diesel car market has been growing in India in recent years. Suzuki Motor Corp is known for petrol engine technology and does not manufacture diesel engines. It obtained diesel engine technology largely to meet the requirements of Indian customers,'' the MUL Chairman, Mr S. Nakanishi, told the company shareholders at the annual general meeting on Friday. Mr Osamu Suzuki, Chairman, Suzuki Motor Corp, was also present at the AGM.

Mr Nakanishi said the diesel engine plant would come up by the end of 2006, strengthening Maruti's leadership in passenger cars.

The company plans to make investments in a new car plant and an engine and transmission plant in Manesar, Haryana.

``The existing manufacturing facilities are operating at close to peak capacity. The new car plant will augment production and help in meeting the higher anticipated demand,'' he said.

Maruti, which currently has production facilities to manufacture 6 lakh cars a year, reported a 19.7 per cent growth in sales to Rs 11,353.8 crore in 2004-05, while profit jumped 57.5 per cent to Rs 853.6 crore.

The company has drawn out an ambitious programme to roll out five new models over the next five years, Mr Jagdish Khattar, Managing Director, MUL said.

Mr Nakanishi said Maruti was Suzuki's largest overseas operation and the parent company was assisting Maruti to improve productivity and reduce cost and is also collaborating in developing research and development capabilities.

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