MUMBAI (Kyodo) -- Maruti Suzuki India Ltd., Suzuki Motor Corp.'s unit in India, said Wednesday it has signed a land purchase agreement with the western state government of Gujarat to construct a new passenger vehicle plant in Mehsana.
Suzuki, which dominates India's passenger vehicle market with a roughly 40 percent share, plans to start operating the new plant with an annual output capacity of 250,000 vehicles in the year to March 2016, with the aim of retaining its competitive edge in the growing Indian car market, company officials said.
The Japanese automaker will invest 40 billion rupees (around 56 billion yen) in the plant, which is expected to boost its total output capacity in India to 2 million vehicles.