Mahindra & Mahindra is planning to invest INR30bn ($578m) to open a new sport utility vehicle (SUV) manufacturing facility in Madhya Pradesh, India.
The automaker has examined a land in Bagroda, around 20 km from Bhopal.
Madhya Pradesh Industrial Centre Development Corporation managing director Manish Singh was quoted by the PTI as saying that the company is holding talks at the highest level with the government.
Singh added that if the company invests in the unit it will be the biggest investment in the state.
Recently, Mahindra & Mahindra had revealed its plans to launch its high-end SUV SsangYong Rexton on 17 October 2012 in Mumbai, India.
According to Mahindra, SsangYong Rexton is expected to be equipped with a new 2.0-litre four-cylinder common-rail diesel engine that delivers 152bhp and 367Nm of torque.