India's largest car-maker Maruti [Get Quote] Suzuki India Ltd on Monday announced a fresh investment of US $1.8 billion to achieve its target of producing one million cars by 2010-11.

The bulk of Maruti's fresh investment will be in a research and development facility, for which the company has applied to the Haryana government for 500 acres of land near Manesar.

"The investments will ensure our supremacy in the Indian market," said Osamu Suzuki, chairman of Suzuki Motor Co, Maruti's principal stakeholder. The R&D centre would be used to design both cars and engines that are sold in India, he added.

Apart from R&D, the company will invest in a spare parts depot, stockyard, showrooms and a vehicle-testing facility.

Maruti, which sells 660,000 cars annually and has an over 50 per cent market share, announced investments of about $2 billion last year to increase the annual capacity of its Gurgaon plant from 550,000 to 700,000 and the new plant in Manesar from 100,000 to 300,000.