Japan's Suzuki Motor Corp is planning to build a new factory in India capable of producing more than 250,000 vehicles a year, the Nikkei business daily reported on Sunday.
Suzuki aims to start operations at the new plant as soon as 2013, the newspaper reported without citing a source.
The automaker, which first started production in India in 1983, plans to expand output there to 1.45 million units by 2012.
The latest expansion will increase annual output in India to 1.7 million units by 2013 -- exceeding total output of 1.4 million in Japan, the newspaper said.
Suzuki has more than 50 percent market share in India, which is one of the fastest growing automobile markets in the world.
Maruti Suzuki, India's leading car maker which is 54.2 percent owned by Suzuki, posted a 24 percent rise in August sales for its best-ever month.