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Maruti Suzuki is all set to step into the commercial vehicle market. A new LCV codenamed Y9T will roll out from its Gujarat plant once it becomes operational in 2016. Senior Maruti executives communicated this decision at an offsite with its vendors in Malaysia last week. The new LCV is already under development and will compete head-on with the Tata Ace. It will be powered by a new 2-cylinder 800cc diesel engine, now in advanced stages of development. The new LCV is being developed ground up at the India research and development centre, a sign of the Japanese parent's growing confidence in the Indian subsidiary's R&D capabilities. Maruti Suzuki's new R&D facility in Rohtak is expected to go live next year. Four people close to the development told ET that the two-cylinder 800cc engine, a naturally aspirated variant for LCV and turbocharged variant for small cars are at an advanced stage of development. The company is also strongly considering extending the family of diesel engines to the 1.2-litre three-cylinder engine and 1.4-litre four-cylinder engine. The new LCV follows the success of the Tata Motors Ace, which now sells 2 lakh units every year. Mahindra & Mahindra's Maxximo is another competitor in this segment. Source: Economic Times