Diesel has done good for Maruti. Fiat’s Multijet Diesel powered SX4, Ritz, Dzire and Swift are churning out good numbers. However, the smaller cars such as the A-Star, Wagon R and Estilo are not offered in a diesel variant because there is no 1L diesel engine under Maruti’s sleeve. This is where the new 1,000 cc Fiat diesel engine will come into picture. Fiat is hard at developing a small diesel engine similar to the Smartech one in the Chevy Beat. Mr RC Bhargava, the managing director of Maruti Suzuki, has showed immense interest in the future potential of this new mill by Fiat. He said, Engine Manufacturing Capacity is not particularly going to be a problem because the plant in Haryana, a joint venture (JV) between Suzuki and Maruti, can produce 240,000 diesel engines per year. MSIL plans to increase the capacity to 300,000 engines per annum. Maruti will also source engines from Tata-Fiat’s Ranjangoan facility where the compact engine could be produced. This diesel engine can make its way into the hood of many cars from Maruti’s stable such as the Alto K10, Alto F8, Wagon R and even the new 800 cc car (codenamed the YE3). This will only boost the demand further and give Maruti Suzuki a strong foothold in the entry level hatchback segment. Of course, it will also be present in the new small car that Fiat is developing for India.