Mahindra & Mahindra Ltd. plans to invest 100 billion rupees ($1.2 billion) in a plant to make electric sports utility vehicles, a significant shift for a company that has been heavily reliant on gas-powered cars.

Mahindra will invest the funds over eight years to build the factory in Pune, western India, according to an exchange filing Wednesday. It will produce electric SUVs under the XUV and BE brands, both of which were showcased in August in the English county of Oxfordshire, where they were designed.

The plan was approved under a Maharashtra state program to promote EVs. India has been slower than many countries in adopting cleaner cars, hampered by a lack of charging infrastructure and high prices. Home to some of the world’s most toxic air, India has pledged to become net-zero carbon emitting by 2070.

The new plant could help Mumbai-based Mahindra better compete with Tata Motors Ltd., the dominant player in the EV market. Mahindra only sells one electric car — the e-Verito — despite having a first-mover advantage after purchasing an Indian electric automaker in 2010. The company is, however, the country’s top electric three-wheeler maker.