Maruti Suzuki India plans to finalise a diesel engine supply deal with Fiat ‘s Indian unit by December so it can increase production of the recently redesigned Swift model line.

Maruti chairman RC Bhargava said: “We are in discussion with Fiat for sourcing of diesel engines from their Ranjangaon plant. We are in a fairly advanced stage and we should see something in two months.”

He added: “Suzuki Powertrain India (SPIL) has capacity of 25,000 units per month [and has reached that] so we are looking at Fiat.”

Asked how many engines Maruti wants from Fiat, he said: “It would depend on the capacity they can allocate to us.”

Once the deal is finalised, Bhargava said, Maruti’s Swift production should be about 20,000 units a month from January. Prior to the strike in October, the automaker was making 18,000 a month.

Fiat’s Ranjangaon plant can make 300,000 engines a year.