Tata Motors is likely to record a 44 per cent rise in passenger vehicle sales this fiscal by selling over 150,000 units, helped by a higher demand for its premium small car Indica and mid-sized Indigo.

The company is also planning to boost production capacity either by expanding its plant at Pune or outsourcing extra capacity to other automakers to meet rising domestic sales and exports, sources in the company said.

During April-February 2003-04, Tata Motors sold 135,409 vehicles, of which the domestic market accounted for 124,958 units.

Tata Motors, vice-president (commercial) Rajiv Dube, said the company is exploring options to increase capacity, keeping in view that the estate version of the Indica, called Marina, will also be launched this year. He did not give any timeframe or the expected hike in capacity.

Sources said overall sales, including trucks and buses, was expected to cross 300,000 on rising truck sales.

Tata Motors is now producing cars at 90-95 per cent of the installed capacity of about 100,000 units, which could only be increased to about 1.04 lakh units with some adjustments, after which further capacity hike will be needed.