Maruti Suzuki India, a subsidiary of Japanese automaker Suzuki Motor, is planning to increase its diesel engine production capacity to 700,000 units by 2014.
Currently, the company has a diesel engine production capacity of 300,000 units and it buys another 100,000 from Fiat.
In March 2012, Maruti said it will invest $304.93m to open a new diesel-engine plant at Gurgaon.
The new plant, which is likely to begin production by the middle of 2013, will produce 150,000 diesel engines by the middle of 2013 and 300,000 in 2014.
Maruti Suzuki India sold a total of 82,234 units in July 2012, compared to 75,300 units for the same period last year.
Maruti Suzuki India contributes about 30% to Suzuki Motor's pre-tax profit and 46% to its overall production outside Japan.
