"When you look to the German car manufacturers now, they are fighting against each other with the biggest statement, with more horse power, and these days a diesel engine car is as powerful as a petrol car, " Saab Europe's Claude Makowski told BBC News Online.

BBC: The Jaguar XJ

Thanks to the efficient turbocharged, common-rail, direct fuel-injection diesel engine, the concept car is still very fuel-efficient.

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The new diesel-engine plant will be at Gurgaon, while its diesel-car capacity will be increased at Manesar, Mr. Bhargava said.

WSJ: Maruti Sees 5%-7% Sales Growth Next Fiscal Year

In 2000 Peugeot became the first manufacturer to sell a car (the Peugeot 607) with a diesel engine fitted with a particulate filter.

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The money will support the introduction of its new Civic and CR-V car models and a new 1.6-litre diesel engine.

BBC: Honda invests ?267m in Swindon plant