Revvmaster,
You have to understand that the size of the Indian market, especially in specialised diesels, is yet very small. As such, we are going to see a lot of engine-sharing and platform-sharing - and rightly so. The investments made in an engine plant are of magnanimous proportions, which grow even further when we are talking of the latest Common Rail technologies.
Its not the first time either. Remember the Peugeot TUD5 that has powered everything from the Indian Peugeot 309GLD to the Zen to the Esteem to the Hyundai Accent. Within the same brand, how many engines do you see powering different cars. Theres the Alto 800cc and 1100 cc, the Tata diesel powering the Sumo/Safari/Sierra etc. The Hyundai CRDi which is going to be common between the Getz and the Accent. Or the Mercedes range which has so much of engine sharing between the C, E, S and M Class models.
Your suggestion of Suzuki designing diesel engines is spot on. But theres only one problem i.e. Suzuki is too small a global player to now start developing diesel engines themselves!! The strongest markets for Suzuki dont care about diesels (U.S. and Japan). And when GM already owns a part of Suzuki, why reinvent the wheel? GM already has proven diesel technologies...whats the point of collaboration without technology transfers?
The only reason that anti-diesel corporations like Maruti and Honda are jumping on the diesel bandwagon is that diesel engines have come of age. They are now refined, more fuel-efficient, less polluting and MORE POWERFUL than ever before. The Merc E270CDi is actually quicker and faster than the E240 V6. The Hyundai Accent CRDi, I believe, is as fast if not faster than the petrol Accent. Consumers the world over are changing their perception of diesel engined cars, with even America waking up to the benefits of the previously unfavored fuel. The torque, and resultant driveability, of diesel engined cars is unmatched by their petrol counterparts.
GTO
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