Maruti Suzuki India Limited (MSIL) is reportedly developing a new engine, codenamed YP3, for its compact cars Alto and WagonR. The YP3 engine will mark the next big step by Maruti in engine manufacturing, after the introduction of its successful KB series engines which power the Ritz and the A-Star. The more powerful new engine will replace the existing F8D engines in the Alto and the WagonR. It will also allow Maruti to lower the prices of the two cars and to further expand its market share. Though officials at Maruti Suzuki refuse to confirm the development, media reports say that the YP3 engine will be introduced sometime at the end of this calendar year.

Meanwhile, the company recently started exporting the Maruti Ritz to Indonesia. It shipped 500 units of the 1.2 litre petrol version of the car to the South East Asian country last week, and is hoping that it receives a good response.