The country's largest carmaker Maruti Suzuki India on Saturday said it will invest Rs 4,000 crore to set up new manufacturing facility in Gujarat by 2015-16.
The company said the new plant at Mehsana will be set up in a phased manner with overall capacity of 2,50,000 units in the first phase.
MSI today "signed State Support Agreement (SSA) with the Government of Gujarat for purchase of land near Mehsana to set up an all new manufacturing facility", the company said in a statement.
The Gujarat government has allocated around 700 acres for the proposed plant, it added.
"This land purchase by the Company is in line with long term management view on expansion of its manufacturing facilities in India to meet future market demand," MSI said.
Based on the market demand, the manufacturing facility near Mehsana will be added to the company's existing plants at Gurgaon and Manesar in Haryana, it added.
When the Gujarat plant is commissioned, the total production capacity of the company will be 20 lakh units.