Mrunal Manmay Dash

Indian carmaker Maruti Suzuki India Limited (MSIL) will invest Rs 38,200 crore ($4.2 billion) to build a second car plant in Gujarat state and will add a new production line at an existing plant, the president of its parent company, Suzuki Motor Corporation said.

The plans were announced during the Vibrant Gujarat Global Summit, where thousands of chief executives, investors and diplomats have gathered for the three-day biennial event.

The investments will see the company's annual production capacity in Prime Minister Narendra Modi's home state jump to 2 million vehicles from 750,000 currently.

Toshihiro Suzuki, president of Japan's Suzuki Motor, also said the group's first battery electric vehicle will be rolled out from Maruti's existing plant in Gujarat by the end of the year.

In addition to being sold in India and Europe, the car will be exported to Japan - marking the first time for Maruti to export to its parent company's home country.

Maruti, which commands more than 40 per cent market share in the world's third-largest auto market, plans to have six EV models by 2030.

The investment summit is part of Prime Minister Modi's final push to attract more investment in the country before a national election in which he will fight for a third term and is widely expected to win.