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Maruti Suzuki Invests ₹4,960 Crore in Gujarat for 1 Million Unit Expansion

Maruti Suzuki India's board has approved a ₹4,960 crore proposal to acquire land for expanding its manufacturing capacity in Gujarat. The expansion aims to add up to 1 million units annually, as the company's existing capacity of 2.4 million units is fully utilized. This move supports the company's goal to reach a total annual capacity of 4 million units to meet growing domestic and export demand. The investment follows a record production year where the company manufactured over 2.25 million vehicles in 2025.

Key Points: Maruti Suzuki Approves ₹4,960 Crore Land Deal for Gujarat Plant

  • ₹4,960 crore land deal approved
  • Capacity addition up to 1 million units
  • Existing 2.4M capacity fully utilised
  • Aims for 4 million units annually
2 min read

Maruti Suzuki approves Rs 4,960 crore land deal for capacity addition in Gujarat facility

Maruti Suzuki board approves a ₹4,960 crore land acquisition in Gujarat to add up to 1 million units of annual production capacity.

Maruti Suzuki approves Rs 4,960 crore land deal for capacity addition in Gujarat facility
"The proposed capacity addition is up to 1 million (10 lakh) units - Maruti Suzuki India"

New Delhi, Jan 12

Maruti Suzuki India Limited, the country's largest car manufacturer, on Monday informed that its board has approved a Rs 4,960-crore proposal to acquire land for expansion of its manufacturing capacity in Gujarat.

The land acquisition is for the expansion of production capacity at Khoraj Industrial Estate from Gujarat Industrial Development Corporation, and "the proposed capacity addition is up to 1 million (10 lakh) units", Maruti Suzuki India said in an exchange filing.

"The cost of land acquisition, development, and preparatory activities approved by the board is Rs 4,960 crore," it said, adding that the overall investment would be finalised and approved by the board while framing the phases of installation of capacity.

The mode of financing would be a combination of internal accruals and external borrowings, Maruti Suzuki India said.

"The total existing capacity is around 24 lakh units per annum in Gurugram, Manesar, Kharkhoda, and Hansalpur, with a capability to produce 26 lakh units per annum. This includes the units produced at erstwhile Suzuki Motor Gujarat Private Limited, which has been amalgamated with the Company," the filing said.

The existing capacity is fully utilised, the vehicle manufacturer added.

The car manufacturer had produced over 22.55 lakh vehicles in 2025 -- its highest-ever output in a calendar year. This is the second consecutive year that Maruti Suzuki India has exceeded 20 lakh units in annual production. The production includes vehicles for domestic sales, exports, and OEM supplies.

Managing director and CEO of Maruti Suzuki, Hisashi Takeuchi, said that a high degree of localisation helped the company achieve such scale while maintaining the global competitiveness of India's automotive manufacturing ecosystem.

Maruti Suzuki India has exported 3.95 lakh vehicles in 2025, its highest ever in any calendar year. This marks a growth of over 21 per cent as compared to 2024.

The company with over 40 per cent share of the domestic market in the passenger vehicle segment plans to enhance its manufacturing capacity to 4 million units per annum to meet rising domestic demand and serve international markets.

- IANS

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Reader Comments

P
Priya S
Great to see the expansion, but I hope this investment also comes with a strong push towards more electric and hybrid vehicles. The future is green, and market leaders like Maruti have a responsibility to lead that charge.
A
Aman W
Nearly 5000 crore! That's a massive vote of confidence in India's economic growth story. The export numbers are impressive too. Hope this creates thousands of good quality jobs for local youth in Gujarat.
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Sarah B
As someone living in Gujarat, the industrial development here has been remarkable. However, I sincerely hope the land acquisition process was fair and transparent for the original landowners. Growth must be inclusive.
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Vikram M
"High degree of localisation" is the key phrase. This is how we build a robust supply chain and reduce import dependence. More Indian suppliers will benefit. Jai Hind!
K
Karthik V
While expansion is good, I hope they also focus on improving after-sales service and spare parts availability. Sometimes feels like they sell so many cars but the service network struggles to keep up. Just my two paise.
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Nisha Z
Amazing production numbers! 22.55 lakh vehicles is no small feat. This shows the rising purchasing power of the Indian middle class. My first car was a Maruti 800

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