NEW DELHI, April 16 -- Maruti Suzuki India Ltd is staring at a potential drop in both sales and market share as it weighs a plan to stop selling diesel passenger vehicles from April next year.

India's largest passenger vehicle maker garners nearly 30%, or about 450,000 units, of its annual sales from diesel vehicles. It expects to push about half of those buyers to shift to petrol or compressed natural gas (CNG) vehicles by offering incentives, and also provide CNG options in more models. It, however, fears that the remainder will shift to diesel vehicles of rival brands, according to an internal projection prepared by senior executives of Maruti.

Maruti is considering the drastic step on the future of its diesel range as the imposition o...