"The supply of both the diesel cars taken together will go up almost 50% from the existing 7,000 units per month to 10,500 units per month," Hyundai Motor India Ltd (HMIL) said in a statement.
The company has increased sourcing of diesel engines from South Korea following increased demand of such cars in India due to a big difference in retail prices of petrol and diesel.
Commenting on the development, HMIL Director (Marketing and Sales) Arvind Saxena said: "Increased supply will ease the waiting period substantially. We expect the waiting period for the diesel Verna to drop from 6 months to 2-3 months and for the new iGen i20 to about a month."
Last year, HMIL had put on hold its Rs 400-crore diesel engine plant.
The plant was envisaged to have an annual capacity of 1.5 lakh units for three types of engines -- 1.1 litre, 1.4 litre and 1.6 litre for the domestic market.
With the Budget for 2012-13 leaving the tax structure of diesel-driven vehicles unchanged, the company had recently said that it was evaluating the situation and would take a decision soon.
In 2011, HMIL's domestic sales increased to 3,73,709 units, registering a growth of 4.76% from 3,56,717 units in the previous year.