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Maruti Suzuki can reduce the supply of diesel engine up to half from Fiat soon. One of the reason behind this is reduction in demand of diesel vehicles and and another is the largest car company of the country wants to get benefit of full capacity of it's diesel plant.
Maruti had made an agreement of three years to buy 1.3 liter diesel engine from Ranjangaon of Fiat India from 2011. It uses these Fiat's diesel engine in it's popular cars like Swift, Dezire and Ritz. In 2011-2012 Maruti bought more 1,00,000 engines from Fiat.
This reduction in diesel is occurred because of decrement in the auto sales in last financial year. An executive of the company said that there will be decrement of 40 to 45 percent in the purchase of diesel engine this year.
Kenichi Ayukawa MD and CEO of Maruti Suzuki, said that further Fiat diesel engines will be bought according to the demand and the company will maintain the relationship with Fiat in the matter of diesel engine supply.
Chief operating officer of Maruti Suzuki said that it's clear in the agreement that the company will buy diesel engine from Fiat but number of engines is not mentioned in that, it will be decided by the condition of Indian market.
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