Isuzu Motors is building an INR30bn (US$488m) factory in Sricity, Andhra Pradesh.
It will make pick-up trucks and SUVs at the plant which will be commissioned by 2016.
According to the Hindu Business Line, the factory will have an annual production capacity of 50,000 units initially which will be increased to 120,000 units by 2020.
By the end of 2015-16, Isuzu plans to open 60 outlets across the country in order to boost its market presence.