Asia Bizz: Italian automobiles manufacturer, Fiat, has now signed in an agreement with the Japan’s Suzuki Motor Corporation. Fiat will supply 1 lakh diesel engines to Maruti Suzuki India, which in turn will help the Indian auto giant to manufacture more engines.

The partnership will help Maruti Suzuki to meet the growing waiting list for its vehicles. Fiat will reprtedly supply its 1.3 litre multijet engine and it will be licensed by Fiat India Automobile. It is a joint venture between Fiat and Tata Motors, which will be supplying engines to the Indian unit of Suzuki Motors.

Fiat is expected to supply 100,000 engines annually to Maruti Suzuki for a period of three years. The production of the 1.3 multijet engines will begin by the fourth week of January 2012 at the Ranjangaon plant of Fiat India Auto in Pune, in the state of Maharashtra.

The supplies by the company is expected to begin at the earliest since previously, the supply of these engines got stuck on pricing issues. The recent development will bring a sigh of relief to Maruti Suzuki which has over 1,10,000 customers waiting for the delivery of its largest selling car, Swift.

Maruti Suzuki is also looking forward to increase the production at the Manesar Plant so as to deliver more diesel cars.