New Delhi | Maruti Suzuki India on Wednesday said its board has approved investment of Rs 7,410 crore to set up a third plant at Kharkhoda in Haryana with a capacity of up to 2.5 lakh vehicles per year.

The existing capacity at Kharkhoda stands at 2.5 lakh units per year. Another plant with a capacity of 2.5 lakh units per year is under construction, Maruti Suzuki said in a regulatory filing.

In its meeting held on Wednesday the Board approved setting up of the third plant at Kharkhoda with a capacity of up to 2.5 lakh vehicles per year, it added.

The investment required is Rs 7,410 crore, the company said.

The proposed capacity addition would be up to 2.5 lakh units per year. With this addition, the capacity at Kharkhoda is likely to reach 7.5 lakh units per year and the proposed capacity is to be added by 2029, it said.

The investment will be funded through internal accruals, the company said, adding the rationale behind setting up of the third plant is due to growth in market demand including exports.