Japanese automaker Honda will be setting up its third manufacturing unit in India, Times of India has reported. The new unit will focus on electric and hybrid cars and will come up in Gujarat at a cost of Rs 9,200 crore.

This will be one of the largest investments in the auto sector of India. This investment will bring Honda’s total investment in India to the tune of Rs 18,500 crore.

“India is one of the most critical markets for Honda globally, and we want to strengthen our operations here,” Honda Cars India President and Chief Executive Officer Gaku Nakashi told Times of India. Further, he added that the company’s plans to expand reflected the growth potential in Indian car market.

Honda currently has two plants in India. The first is in Greater Noida and second is in Tapukara Rajasthan. The company’s total production stands at 2.8 lakh units per annum, higher than 1.7 lakh units the company sold in the year 2017-18. The company is in the process of acquiring 380 acres of land for its Gujarat project.

The company’s first electrified vehicle range has been developed under the Clarity brand. The car includes full-electric car, plug-in hybrid, and fuel-cell option. The car is currently available in the US and Japan. The company has not provided a tentative date for the electric car’s launch in India.