The two auto giants agreed to supply Fiat's 1.3 litre-multijet engines - licensed by Fiat India Automobile, which is a joint venture between Fiat and Tata Motors- to Suzuki's Indian arm, Maruti Suzuki India.
The JV Company will supply up to 100,000 engines annually to Maruti beginning January this year for a period of three years. The production of multijet 1.3 litre engines for Maruti Suzuki will begin in the fourth week of January at Fiat India Auto's Ranjangaon plant in Pune, and supplies will resume at the earliest. The supply of these engines got stuck on pricing issues.
This development will bring a relief to Maruti, which has over 1, 10,000 customers waiting in the queue to take delivery of its largest selling car, Swift. The company is gearing up to increase production at the Manesar plant to deliver more diesel cars.
A senior Maruti Suzuki official said, "Swift will definitely get preferential treatment, and we are hopeful of crossing 20,000 units of Swift in a month. And with the new Swift Dzire in the pipeline, additional supply of engines would be of immense help to reach our customers faster."
Starting January, Suzuki Powertrain - a subsidiary of Maruti Suzuki - will start producing 5,000 more units a month, and the extra 8,000 engines from Fiat's Ranjangaon plant would mean, there will be additional 13,000 more diesel engines at the disposal of Maruti Suzuki, which would help the carmaker clear some of its backlog.
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