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Old 23rd April 2013, 15:20   #1
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Default Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

Maruti Suzuki is looking to bring its own 1.0 L and 1.4 L Diesel motors by 2015, reports CNBC Moneycontrol.com.

Maruti currently uses Fiat diesel engines for the Swift, Ritz, Dzire, Ertiga and SX4, paying a royalty fee for every engine used. The company went ahead and signed a 3 year deal in 2012 to source 100,000 1.3L MultiJet diesel engines a year from Fiat.

Suzuki Powertrain India Limited (a subsidiary of Maruti Suzuki) already manufactures the 1.3L MultiJet Diesel under license from Fiat. It has an installed capacity of 3 lakh engines a year. Maruti has invested Rs 1,700 crore in a new diesel engine plant that is expected to go live by the second half of this year.

The decision to procure Fiat engines for its cars was an inspired move that allowed Maruti to run away with the diesel market in India. However, at best, it can be seen as a stopgap arrangement, and far from one that makes for a permanent strategy. Competitors like Hyundai, Nissan, Honda, Toyota, Ford, VW, Chevrolet etc. use their own diesels. There is inherent risk with being dependent on a 3rd party (and competitor) for engine supplies, not to mention the effect of royalty fees on thin profit margins. With its own motors in the pipeline, Maruti is unlikely to extend its agreement to procure Fiat engines beyond 2014.


The sheer volumes make it feasible for Maruti Suzuki to develop its own diesel engine. Earlier reports had suggested that Suzuki Japan was developing an 800cc Diesel motor (codenamed E2).

Fiat launched the MultiJet Diesel in 2003 and licensed the production to other companies in 70, 75 and 90 HP variants (production crossed 4 million units in 2011).

Last edited by GTO : 23rd April 2013 at 15:59.
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Old 23rd April 2013, 16:00   #2
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

Thread moved from the Assembly Line (The "Assembly Line" Forum section) to the Indian Car Scene. Thanks for sharing!
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Old 23rd April 2013, 18:18   #3
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

By 2015 with diesel prices probably being de-regulated, I wonder whether MUL will be able to reap the benefits to the fullest ?
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Old 23rd April 2013, 19:35   #4
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

Any one has any clue how much FIAT gets paid for each engine? That would actually give us some clue about if its the right step forward.
I think its high time that Maruti gets out of this royality business. Look at swift. Looks like they know how to use the engine better than FIAT themselves.
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Old 23rd April 2013, 22:13   #5
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

Did i hear it correctly ? Maruti is a nobody to develop in house diesel engine. I hope we are talking about its parent Suzuki(which also is not a big shot auto maker)

But its a good move since it saves royalty costs and also any future threats !!
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Old 23rd April 2013, 23:22   #6
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And I was under the impression that MUL will start using upcoming VW 1.5 TDI engines, as a part of a tie up between Suzuki and VW ( Source :- http://www.autocar.co.uk/car-news/in...gm-partnership )
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Old 24th April 2013, 09:23   #7
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

MSIL should be really careful getting into development of new oil burners as they read Suzuki are not well know for their diesel motors. Also investing in such large capacities for the new engines at times of deregulation is a gamble of sorts.

However they can easily modify/ borrow the 1.0 litre engine now on duty in Beat and plonk it into cars such as Wagon R, Estilo, A Star and may be even Eeco as this motor is just a 3 cylinder derivative of the MJD redeveloped by GM with their erstwhile Fiat alliance.

Also if they develop the 1.4L, will all their current line up move from the MJD to this one. Will be a lot of retuning and wasted effort.
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Old 24th April 2013, 09:27   #8
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

Quote:
Originally Posted by rajshenoy View Post
Did i hear it correctly ? Maruti is a nobody to develop in house diesel engine. I hope we are talking about its parent Suzuki(which also is not a big shot auto maker)

!!

Errr , why is Maruthi a nobody to develop engines ? Why must we under estimate them ? I am not sure I understood you .

1L diesel engine sounds promising , can we expect a diesel gypsy with power steering ? 1.4L diesel gypsy would be nice too.
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Old 24th April 2013, 10:06   #9
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

Quote:
Originally Posted by girimajiananth View Post
Errr , why is Maruthi a nobody to develop engines ? Why must we under estimate them ? I am not sure I understood you .

1L diesel engine sounds promising , can we expect a diesel gypsy with power steering ? 1.4L diesel gypsy would be nice too.
Buddy i was only saying Maruti does not have capability. Suzuki might be in a better position to invest on engines.

Only in house creations that we have heard from Maruti(exists only in india !!) is Swift Dzire(both old and new) and we know what they have done there.

Have you ever seen completely India made design coming out of Maruti? Maruti pays Royalty to Suzuki and Fiat. (Another Analogy is Hero motors vs Bajaj)

I would rate Tata and M&M R&D to be much higher than that of Maruti which completely relies on Suzuki to supply cars, engines and any other technology. M&M is way to ahead. Even Tata have their own CR4 Engines.
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Old 24th April 2013, 10:29   #10
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

Post deleted by the Team-BHP Support : Please do NOT post messages that add little or no informational value to the thread. We need your co-operation to maintain the quality of this forum.

Please read our rules before proceeding any further. We request you to post ONLY when you have something substantial to add to a discussion.

Last edited by GTO : 24th April 2013 at 13:13.
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Old 25th April 2013, 12:37   #11
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

So, finally!

A step in the correct direction to curtail royalty costs and boost profits. With MUL ringing the cash registers in the diesel car market, this surely is a good move.

Positives : They tweaked the engine much better than the parent company(FIAT) which should lay no doubt about their ability to build an equivalent or a better engine!

Negatives : Too bad a timing! Should have planned this when there were greener pastures around which in turn would have ensured MUL a maximum bang for their buck (read investment). With the diesel deregulation we obsrved some days ago, not sure how well this investment would get rewarded.

-Shivang Gandotra

Last edited by MetalBuff : 25th April 2013 at 12:45.
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Old 25th April 2013, 15:41   #12
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

In all probability its going to be a reverse engineered diesel engine. The cc change is just to ward off any copy write issues.
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Old 25th April 2013, 15:46   #13
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

Quote:
Originally Posted by MetalBuff View Post
So, finally!

Positives : They tweaked the engine much better than the parent company(FIAT) which should lay no doubt about their ability to build an equivalent or a better engine!
I tend to disagree a bit here. IMHO, the Marutis outsell other cars with the same engine because of their service backup and the mindset among people that the Marutis are cheaper to maintain. I dont think the Swift or the Dzire outsells the Punto or Linea because of its better engine tune or driveability.
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Old 25th April 2013, 16:59   #14
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Default Re: Rumour: Maruti developing in-house 1.0L & 1.4L Diesel Engines

By 2015 Petrol and Diesel Fuel Prices would be quite similar.

Yes Diesel engines will give better FE and Torque, but the price gap between Petrol and Diesel engine varients will have to come down and people will not be prepared to wait or give that much of a premium for a diesel engine.

They may be better off extending the current agreement with Fiat. Developing a better engine from ground zero vs Fiat in the meanwhile improving further from the technology level they pocess in this is going to be quite hard. Fiat is a known leader in small sized diesel engines and they are likely to introduce better varient by 2015. Suzuki on the otherhand would start from scratch. Yep. Honda has done it but then it was Honda.

Lets see how the results pan out and then see. It is too early and only a rumour presently.
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Old 26th April 2013, 08:55   #15
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Quote:
Originally Posted by swami.n View Post

I tend to disagree a bit here. IMHO, the Marutis outsell other cars with the same engine because of their service backup and the mindset among people that the Marutis are cheaper to maintain. I dont think the Swift or the Dzire outsells the Punto or Linea because of its better engine tune or driveability.
Point taken! But, having driven both, the engine in the Swift feels much more responsive ( better engine tune + lighter construction at work)

In no way I meant that Maruti rules the roost due to the superior drivability their "tweaked" engines offer, brother . The focus was strictly on the engine.

Peace \/

-Shivang Gandotra

Last edited by MetalBuff : 26th April 2013 at 08:59.
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