Maruti Suzuki India Ltd.

India's largest car-maker Maruti Suzuki India has finalised a deal to buy diesel engines from Italy's Fiat. Fiat will supply up to 1 lakh diesel engines per year to Maruti. With this deal Maruti plans to raise Swift hatchback output from January 2012. Earlier this month, Maruti raised diesel car prices by up to Rs 10,000 rupees, taking advantage of the demand for the segment as input costs continue to go up.

Maruti, which has installed capacity to make about 1.5 million cars a year, is expanding one of its existing plants to reach 1.75 million annual capacity. The company is in the process of buying land to build a new factory in Gujarat, but will start work at the plant depending on the demand scenario and when it feels it needs to expand capacity beyond 1.75 million.