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27 Oct, 2012 12:33 PM

Maruti working on entry level diesel car : 30km per litre expected

Maruti working on entry level diesel car : 30km per litre expected Maruti Suzuki has been making headlines in the India's automobile sector. The recent launch of Alto 800 had been a huge success. The company is now working overtime on developing a small two-cylinder 800cc diesel engine. THe company is collaborating with its parent company Suzuki Motor Corp in Japan.

The new engine is codenamed E2 and is expected to give 25-30 kilometres to a litre.

Tee project however after indigenisation may take 2-3 years for rolling out to the users. Experts see a huge potential for diesel cars in the entry-level segment below Rs 4-5 lakh.


Two-cylinder 800cc engine being developed by Suzuki's engineers in JapanMaruti Suzuki

All-new engine is likely to deliver 40 hp and give 25-30 kmpl

After tests, it may come to India for indigenisation in a year

May power next-gen A-Star and roll out in India by 2015


Maruti expects diesel cars will have a strong acceptance in smaller towns and rural areas, where people commute long distances. People are willing to shell out Rs 30,000-40,000 more and get CNG and LPG kits fitted on their petrol cars to get higher fuel efficiency. So, if the acquisition cost of diesel is not dramatically higher,

Competition is keeping a close eye on that segment as well. General Motors India MD Lowell Paddock says: "That is a very tricky part of a business to make money, and to make it work, you have got to be able to offer the customer a compelling proposition of affordability, refinement and fuel economy, and if you don't have all these factors, you don't have a winning offer. I am looking forward to seeing what competition does."

The Hyundai and Tata Motors are also gearing up with entry-level diesel cars



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