India’s biggest carmaker, Maruti Suzuki, will build a manufacturing plant that can produce up to 250,000 cars a year on an 800-acre site in northern Haryana state. The plant is expected to produce its first car by 2025, and the company would invest over 110 billion Indian rupees ($1.42 billion).
It will be the first major planned investment by a carmaker in India in years.
Maruti Suzuki India Limited, formerly Maruti Udyog Limited, is a New Delhi-based Indian vehicle manufacturer.
The move comes at a time when most Indian carmakers are battling a slump in sales. Maruti did not say what type of cars it intends to manufacture.
Indian carmaker Mahindra has been lobbying the Indian government against rules requiring cars to have six airbags, saying it would make small cars more expensive and deter buyers. Carmakers across the globe have resorted to hiking prices in a bid to deal with steep raw material and shipping costs.