Ford Otosan in Turkey late on Monday said it would invest €37.8 million ($US45.3 million) to raise capacity.

Citing a Ford statement to the Istanbul Stock Exchange, Reuters said the two-year investment would allow the plant, located in the Kocaeli province of northwestern Turkey, to increase production to 240,000 vehicles from 200,000.

“This project which aims to raise existing production capacity to meet increasing domestic demand and export volume is expected to be completed in two years,” the statement reportedly said.

One of Turkey’s top carmakers, Otosan is a joint venture between Ford and leading Turkish industrial group Koc Holding, Reuters said.

The news agency noted that falling interest rates have made consumer loans for vehicle purchases more attractive and have helped sustain a market revival following a 2001 recession – Otosan targets domestic sales of 130,000 vehicles this year and total turnover of €3 million.