Market sources informed that engine production in Rajkot stood at 1.25 lakh to 1.50 lakh and 1.50 lakh to 1.75 lakh units during year 2004-05 and 2005-06, respectively and this year the total production is expected to breach 3 lakh units mark. It may be mentioned here that in the last four months only 1.50 diesel engines have been produced and the same number of diesel engines are likely to be manufactured by the end of current financial year.

In terms of turnover of the diesel engine industry in Gujarat, 2004-05 and 2005-06 saw total turnover of Rs 180-200 crore. This year, market players expect the turnover to be in the vicinity of Rs 375-400 crore.

According to industry sources, Rajkot, Kolhapur, Kanpur, Agra, Coimbatore and Pune are the main centres of diesel engine manufacturing. Rajkot is mainly known for diesel engines of 10 hp or less than that. Around 90% diesel engines consumed in the country have capacity of 10 hp or less than that. Such types of engines also witness higher exports.