Suzuki Motor＊s India unit started production at its first new plant in eight years, boosting output in a market set to reach the 6 million passenger vehicles milestone by 2030.

The opening of Maruti Suzuki India＊s new factory in Kharkhoda in the northern Indian state of Haryana on Tuesday marked the first phase of what will become one of Asia＊s largest passenger vehicle manufacturing facilities by 2028. India＊s largest carmaker by sales had last opened a new factory in Gujarat, the home state of Prime Minister Narendra Modi, in 2017.

Its latest facility will eventually house four production units, each with a capacity of 250,000 vehicles per year, scaling up in phases through 2028. The first model to roll off the new production line will be its compact sports utility model Brezza, according to a company filing. The model is currently produced at the company＊s Manesar plant.

Despite expectations for domestic car sales growth to be modest this year amid a broader consumption slowdown, India＊s passenger vehicles market is set to grow to 6 million by the end of this decade 〞 cementing its position as the world＊s third-largest auto market.

Maruti Suzuki and its units are forging ahead with its expansion plans, with plans to boost annual capacity to 4 million units as early as 2030 from 2.6 million now.

Suzuki Motor has outlined a ?4 trillion ($26.8 billion) investment plan for India under its midterm strategy for 2030, with a significant portion earmarked for expanding manufacturing infrastructure. However, the company has scaled down its electric-vehicle ambitions, reducing planned battery electric vehicle launches in India from six to four by the end of the decade.

The Japanese parent, which had previously committed to support Maruti on its 4-million vehicle capacity by 2030, has now changed tack to say it will ※monitor market conditions and gradually build§ toward that target at an ※appropriate time.§

India remains Suzuki＊s most critical market, and the company expects it to drive future growth, even as competition heats up.

※The competitive environment is becoming increasingly severe, and the quality of product functions, equipment and services required by customers is increasing,§ Suzuki said in the presentation last week.