Mumbai, Dec. 28 -- Maruti Suzuki India Ltd plans to shut its diesel engine assembly plant in Gurugram in the biggest sign yet of a grim future for diesel cars in India.

The Suzuki Motor Corp. unit might either convert the diesel engine line in Gurugram to produce petrol engines or add an assembly line for petrol engines at its plant in Manesar, said three people directly aware of the development. Both the factories are located in Haryana.

Maruti's highlights waning demand for diesel vehicles in India and its plans to aggressively tap the market for petrol and CNG cars, as well as ecofriendly hybrid and electric vehicles (EVs). India's largest carmaker is expected to gain the most from a deepening partnership between its parent, Suzuki, an...