Japan’s Suzuki Motor Corp said on Tuesday it would build a factory in Thailand with the capacity to manufacture 100,000 small cars a year after receiving government approval for the project.

Suzuki, Japan’s fourth-largest automaker and known for its strength in the compact car segment, said it would invest 20 billion yen (USD 225 million) for a manufacturing site including engine assembly. It plans to start production of the 1.3-litre car in the southeast province of Rayong in March 2012.

Suzuki said it would build about 10,000 cars in the first year.

-TN