Small diesel engines to power India car exports

Car makers like Honda and Maruti Suzuki have laid down plans and investments to develop and manufacture small capacity diesel engines for the Indian market as well as for markets abroad.

In 2012, Maruti Suzuki merged with Suzuki Powertrain India (a subsidiary of Suzuki Motor Corporation, Japan) to bring its diesel engine production under a single management. It is reported that Suzuki is developing two new diesel engines for Maruti Suzuki, one of which is a 1 litre unit while the other is a 1.4 litre unit. Both engines are being developed in Japan and could be ready for mass production in 2014. 

The 1.0 litre engine is likely to be a three cylinder unit while the larger 1.4 motor will be a four cylinder unit. The 1.0 litre Suzuki diesel engine will change the face of the company in India by introducing diesel versions of the Alto, WagonR and Estilo. The 1.4 litre diesel engine will eventually replace the Fiat sourced 1.3 litre Multijet diesel engine currently being used by Maruti Suzuki cars. 

Maruti Suzuki currently exports models such as A-Star, Alto, Estilo, Ritz and the 800 to over 125 countries worldwide. And the addition for a diesel engine to the smaller cars like the Alto, A-Star and Estilo can boost sales of these cars in existing export markets as well as allow Suzuki to enter new markets abroad. 

Honda has recently launched its first diesel car, the Amaze in India. The company plans to use the same 1.5 litre diesel engine in the new Jazz, City, a new compact SUV and a seven-seater MPV. 

Honda is also looking to export diesel engine components manufactured in India to European markets where it has been selling diesel cars for a while now. 

"We will export diesel engine components to Europe and South East Asian markets from India. This fiscal, the target is Rs 500 crore against Rs 332 crore registered in 2012-13," said Jnaneswar Sen, Honda Cars India SVP.

In 2012, Ford expanded its diesel engine production capacity at its Chennai plant and is looking to export its soon to be launched EcoSport compact SUV to 40 countries. The company already exports the made-in-India Figo to 38 countries worldwide as of now. 

Also read: Honda plans entry-level small car