Suzuki Motor Corp.’s president Toshihiro Suzuki announced on Sunday that the company would create a new global research and development company in India and invest aggressively there.

In addition to strengthening Suzuki’s R&D competitiveness and capabilities for India, the new company would also benefit global markets, Suzuki said. He spoke at an event marking the 40th anniversary of Suzuki Company in India in Gandhinagar. Japanese Prime Minister Fumio Kishida and Indian Prime Minister Narendra Modi attended the event.

According to Suzuki, India has become one of the most important countries for the market research company, and it will continue to invest aggressively in the country.

There is a majority ownership stake in Suzuki Suzuki The company dominates the Indian car market with its small, low-cost vehicles. As buyers shift to bigger vehicles like SUVs and regulations demand safer, greener cars, the company faces growing competition.

650 billion rupees ($8.13 billion) has been invested by Suzuki in India to support Maruti and keep it at the top of the market.

On Sunday, Suzuki Group president Suzuki stated that more than 60% of the company’s 2.8 million vehicles were made in India last year.

Maruti and countries in Latin America and Africa are among the countries for which Suzuki produces cars in Gujarat.

A Japanese automotive manufacturer announced in March that it plans to invest 104.4 billion rupees in its India factory to produce electric vehicles (EVs) starting in 2025 and batteries a year later. 750,000 cars can be produced at the plant each year.

A foundation stone was laid by Prime Minister Narendra Modi at the event Suzuki Maruti Suzuki EV Battery Plant in Hansalpur, Gujarat, and NSE 3.35 % Vehicle Manufacturing Facility in Haryana.