The company plans to set up a plant for two-wheelers and spare parts with an investment of Rs 1,600 crore in the state.
The land in Satyavedu Mandal's Madannapalem village is already in possession of Andhra Pradesh Industrial Infrastructure Corporation, state Chief Secretary I Y R Krishna Rao told representatives of the company at a meeting.
The decision was taken at a meeting of the Cabinet on March 20.
The plant would provide direct and indirect employment to around 15,000 persons, the government said.