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(Reuters) - Fuji Heavy Industries Ltd (7270.T) plans to double the production capacity of Subaru cars in the United States to cater to growing demand for the sport utility vehicle in the North American market, the Nikkei reported.
Fuji Heavy's subsidiary Subaru of Indiana Automotive Inc produces 270,000 cars a year at a plant in the U.S. state of Indiana, the business daily said.
The plant makes 170,000 Subaru Forester SUVs and contract manufactures 100,000 Camry midrange sedans annually for Toyota Motor Corp (7203.T), according to the Nikkei.
The U.S. accounts for 50 percent of Fuji Heavy's global car sales.
The company will invest about 40 billion yen ($407.5 million) to increase the plant's annual capacity to 370,000 cars by 2016, the newspaper reported.
Fuji Heavy will soon begin talks with Toyota to end contract manufacturing of the Camry and will produce only Subaru vehicles at the plant, the business daily said.
Reporting by Rohit T. K. in Bangalore; Editing by Kirti Pandey