Suzuki's diesel engine production in India to be tripled

Japan's leading small car maker Suzuki Motor, which holds a 54-per stake in Maruti Udyog, today said it would hike its diesel engine production three-fold in India within three years to meet rising demand.

Demand for diesel engine cars is expected to rise in the coming years as close to a third of Indian car buyers prefer a diesel car because of the lower price of diesel.

The company currently makes 100,000 engines in India, which by March 2010 will rise to 300,000 units.

In October 2006, Suzuki launched a diesel engine plant in Northern India with an annual production capacity of 100,000 units, but still finds it inadequate to meet rising demand.

Some of the additional capacity will also supply Europe.

Last year Maruti Udyog produced 630,000 vehicles.