The country's biggest carmaker Maruti Udyog Ltd [Get Quote] on Thursday said it would invest Rs 2,718 crore (Rs 27.18 billion) in the Indian market by 2008 and launch five new models, including a diesel car, in the next five years.

Unveiling the company's pavilion at the 8th Auto Expo, Jagdish Khattar, managing director, Maruti Udyog said the new investments would be made for introducing new models, research and development as well as upgradation.

Significantly, these investments by MUL, in which Japan's Suzuki Motors holds 54.2 per cent stake, are over and above the Rs 3,200 crore (Rs 32 billion) investments earlier announced for introducing new models and setting up a diesel engine plant.

"The diesel engine plant will be ready by the end of this year and alongwith it will come a new diesel car model in the Indian market," Khattar said.

Asked about the funding of the new investment plan, he said it would be mainly through internal accruals but the company may look at the option of raising loans, if required. "Funds would not be a constraint," he said.

Khattar refused to divulge details on the new models, but said the company would be launching a new model every year in the next five years.

On decline in company's exports in recent times, he said the trend was temporary and expressed hope that foreign shipments would pickup.

The company's pavilion at the Auto Expo displays the SUV 'Escudo' apart from 'Solio', a vehicle specifically designed for the physically challenged.