Takata Corp., Japan's largest maker of auto safety equipment, plans to build its first factory in India, where economic growth is boosting demand for cars.

The company will start producing seat belts at a factory in Madras in southern India by the end of 2009, Kimio Kobori, a Takata spokesman, said. The investment and production capacity have still to be decided.

Takata, a supplier to Toyota Motor Corp. and General Motors Corp., joins automakers setting up factories in India as vehicle sales surge in the world's second-fastest growing major economy.

Carmakers may spend as much as $40 billion in India in the next decade as the nation becomes the world's fastest-growing major auto manufacturer, according to government estimates.

"Takata is an early entrant in the Indian seat belt market, and setting up as a local supplier is a good move," said Takashi Moriwaki, an analyst at Nomura Securities Co. "Cars in emerging markets are not yet known for their safety, but people are realizing how important it is."

The new plant is part of Takata's plan to increase market share in India and the Asia region, where the company forecasts sales will rise 81 percent to ¥100 billion by March 2010 from ¥55.2 billion last fiscal year. The company already has seven production sites in Asia, including China, Thailand, Singapore, Malaysia and the Philippines.

Honda Motor Co., Suzuki Motor Corp. and other Japanese automakers are all expanding in India by opening new factories as economic growth helps lift automobile demand.

From 2006 through 2011, India will be the fastest-growing auto manufacturer among the world's top 20 carmaking countries, New York-based accounting firm PricewaterhouseCoopers says.