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Nissan Motor Co. and its parent, Renault SA, have begun building a factory in India to challenge Suzuki Motor Corp.’s dominance in the country.

The $1.1 billion factory will begin production in 2010 and have a capacity to make 400,000 cars annually for local and export markets, the automakers said in a statement Friday in Madras in south India, where the plant is being built.

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