The car assembly plant will have an initial capacity of 1 lakh cars per year, which will be scaled up to 3 lakh cars per year. The company has earmarked a total investment of Rs 2,500 crore in this unit by 2010.

Besides manufacturing its premium hatchback Swift, the new plant will also manufacture a new export model expected to be launched in 2008-09.

Suzuki Motor Corporation and Maruti Udyog also inaugurated the diesel engine and transmission plant of their JV Suzuki Powertrain India Limited.

The plant has an initial capacity to manufacture 1 lakh diesel engines a year and will be scaled up to 3 lakh engines per year by 2010, with a total investment of Rs 2,500 crore (Rs 25 billion).

SMC holds 70 per cent equity with the rest held by MUL in SPIL. Both MUL's fourth car plant and SPIL's diesel transmission facility are located within the same campus in Manesar extending over 600 acres.

Overall SMC and MUL have announced an investment plan of Rs 9,000 crore (Rs 90 billion) in India up to 2010 including the 4th car assembly, diesel and transmission plant, launch of new models and upgrade of MUL's existing facilities in Gurgaon.

Suzuki Motorcycle India Limited also inaugurated its two-wheeler plant in Gurgaon, which will have an annual capacity of 1 lakh units.