Strong sales of the Tata Nano in recent months will see the firm double its production output of the car.
The move will see up to 20,000 Nanos built per month this fiscal year.
Sales in March of the micro car reached 8707 units, closing in on the firm’s record high of 9000 sales, which was set in July last year.
In the same year, however, safety concerns of the Tata Nano saw sales plummet, with only 509 sold in November.
To revive sales, safety revisions were put in place and finance deals offered to tempt new customers.