NEW DELHI, Sept 7: Japanese vehicle manufacturer Suzuki said on Thursday it was negotiating with Nissan Motor Co to build a factory in India that would export 400,000 vehicles annually.

“If our plans with Nissan get finalised, we hope to export 400,000 vehicles. This is going to be a big jump in export volume,” said Suzuki Motor Corp chairman Osamu Suzuki.

The company did not state its current level of exports.

Suzuki would not confirm a statement by Indian Heavy Industries Minister Santosh Mohan Dev that the proposed joint venture “would bring foreign direct investment worth $1.5 billion.”

Speaking through an interpreter, Suzuki said he could not state a value for the deal which was still under negotiation.

While he said the location of the plant would be decided after a deal was concluded, the Press Trust of India (PTI) reported that Dev said it would be in Manesar, a town on the outskirts of New Delhi, and would be ready in about two years.

Suzuki already has a plant in Gurgaon, a satellite of New Delhi, that rolls out 600,000 units a year, mainly for the local market, PTI said. Also on Thursday, another Japanese auto major Honda Motors said it was looking at entering India's small car market.—AFP