Japanese automaker, Suzuki Motor Corp. is set to invest $970 million on the second production line much before the production at the facility has begun.
The new plant in Gujarat might debut by early 2019 and will manufacture the same yearly volume as the first production line which is set to start production by 2017.
With the additional production line, Suzuki will churn out an increase in capacity by two million cars per year.
The new production plant in Gujarat will manufacture the premium hatchback Baleno with export being considered as the state being a major port.
Earlier, Suzuki Motor Corp.'s unit, Maruti Suzuki had invested about $2.77 billion in December last year to set up six production lines.
Each of the production line is expected to produce 250,000 vehicle each. India being the biggest market for Suzuki Motor, vehicles sales increased by 5.2 percent in the April-June period.
Suzuki Motor which manufactures the Baleno for its exports requirement is sold in Japan and other European markets.
The European spec Baleno is powered with the choice of two engines: 109bhp 1.0-litre Booster Jet petrol engine and the 89bhp 1.2-litre Dualjet with Smart Hybrid Vehicle by Suzuki (SHVS).
India is set to get the 1.0-litre Booster Jet petrol mill in the guise of Baleno RS and is expected to be launched by the end of 2016.