TOKYO -- Suzuki will use a Renault diesel engine for its new-generation Grand Vitara medium SUV.
The current Grand Vitara has a 2.0-liter diesel from PSA/Peugeot-Citroen.
When launched in Europe in October, the new model will have a 1.9-liter diesel from Renault, a source close to the Japanese carmaker said.
PSA has a newer 2.0-liter diesel unit with 136hp compared to the 109hp offered in the version it supplies to Suzuki. Suzuki declined to say why it is not using this engine.
Renault already provides the 1.5-liter diesel in Suzuki's Jimny small SUV.
In Japan, Suzuki builds the Moco, a small minivan based on the Suzuki MR Wagon, for Renault's alliance partner Nissan.
Suzuki will source a 1.9-liter diesel engine from Fiat for a new small SUV it plans to build at its Esztergom, Hungary, assembly plant next year alongside a Fiat SUV.
The Grand Vitara went on sale as the Escudo in Japan on May 16. It makes its European debut at the IAA in Frankfurt in September.
Suzuki plans to export about 50,000 Grand Vitaras from Japan to Europe and the same number to North America.
Last year the automaker sold 38,905 units of the Grand Vitara in western Europe, according to UK-based market researcher JATO Dynamics. Suzuki expects about 70 percent of the Grand Vitaras it sells in Europe to be powered by diesel engines.
Under its 5-year plan, Suzuki aims to sell 350,000 units in its fiscal year ending in March 2010. That's up from 238,114 sold in the company's last fiscal.