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Suzuki Motor Corporation will begin making cars in India next year, marking the country's emergence as a global manufacturing base for automobiles.
The new A-Star hatchback will make its debut at the New Delhi car show in January, and start rolling off Indian assembly lines in October. The "minicar", with a 1-litre engine, will be produced at the company's new $1.9bn plant outside Delhi.
Chairman Osamu Suzuki said the Japanese carmaker aims to make 150,000 of the cars in India and expects this to boost the company's annual European sales to 420,000 vehicles from 310,000. The brand also sells well in Saudi Arabia.
"Suzuki Motor Corp attaches great importance to India," he said. He added that the new A-Star would be "competitively priced" and meet emission controls.
Founded by Suzuki and the Indian government in 1982, the Indian subsidiary - known locally as Maruti - has more than half of the car market thanks to its fuel-efficient models.
The Japanese company has also introduced its premium vehicles, including the SX4 sedan and the Grand Vitara sport utility vehicle, to India in recent years.
Analysts say that the company is targeting India's growing base of wealthy consumers, as well as utilising its advantages in hi-tech, low-cost manufacturing.
