Toyota has postponed the launch of diesel versions of its Etios and Liva models to next year as demand has far exceeded the company's expectations and prompted it to increase capacity.

"We were earlier looking at an end-of-the-year launch for the diesel variants of Etios and Liva, but now it may only be launched in the first half of next year," Sandeep Singh, deputy managing director, Toyota Kirloskar Motor India, told the Hindustan Times.

"The demand for the sedan has exceeded our targets and we are trying our best to reduce the waiting period," he said.

Last month, Toyota also deferred the launch of the Liva hatchback by two months to June. In the meantime it has announced expansion of its manufacturing capacity by 60,000 units per annum. By mid-2012, its twin plants in Bangalore will make 210,000 cars a year against the 150,000 units targeted earlier.

"We have been reading reports of an apparent slowdown in the industry but so far we have not felt anything like that," Singh said. "While Etios is leading the growth, our other cars like Altis, Innova and Fortuner are growing well too."

Since its launch in December 2010, around 8,300 units of the Etios have been delivered from over 30,000 orders received.

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