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Suzuki to Build Car Factory in India on Rising Demand

Suzuki Motor Corp., Japan’s second-largest minicar maker, will build a new factory in India after car sales in the nation jumped more than 30 percent this year.

The plant in Manesar, near New Delhi, will have capacity to produce 250,000 cars and will begin output by mid-2013, Hideki Taguchi, a spokesman, said by phone from Tokyo today. The Indian unit of the carmaker is already constructing a plant of a similar size nearby.

Maruti Suzuki India Ltd.’s four existing plants near New Delhi have a total production capacity of more than 1 million vehicles a year. Competitors have added models in India and built new plants to challenge Maruti in an auto market that may double by 2015, according to the Society of Indian Automobile Manufacturers.

Ford Motor Co. said last month it plans to introduce eight models in India by 2015, following the debut of its first small car earlier this year. Toyota Motor Corp. plans to introduce the Etios hatchback in India in December.

Nationwide passenger-car sales jumped 38 percent from a year earlier to a record 158,764 in July, according to the Society of Indian Automobile Manufacturers. Annual sales may reach 3 million by 2015, according to the group.

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