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

The maker of the Alto, A-Star and WagonR gasoline cars will open a 150, 000-unit-a-year diesel-engine plant and also expand its capacity to manufacture diesel cars by September to meet the expanding demand for diesel vehicles, he added.

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

It has a diesel-engine manufacturing plant at Manesar that can produce 300, 000 engines a year.

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