Maruti Suzuki plans to invest 350 billion rupees ($4.21 billion) to build a new automobile production plant in India’s Gujarat state.

The plant, expected to begin operations in fiscal year 2028-2029, will have an annual production capacity of 1 million units, the automaker said Wednesday. Maruti Suzuki reached a nonbinding memorandum of understanding with the state of Gujarat for the plant’s construction, the company said.