Maruti Suzuki Approves Gujarat Land Buy for Capacity Expansion
ECONOMY & POLICY

Maruti Suzuki Approves Gujarat Land Buy for Capacity Expansion

The board of Maruti Suzuki India Limited has approved the acquisition of land in Gujarat to expand its production capacity by up to 1 million units a year, involving an investment of around Rs 49.6 billion. The land will be acquired at the Khoraj Industrial Estate from the Gujarat Industrial Development Corporation, the company said in a regulatory filing on Monday.

The proposed site will be Maruti Suzuki’s second manufacturing facility in Gujarat. Currently, the carmaker operates three plants at Hansalpur, each with an annual capacity of 250,000 units. A fourth plant at Hansalpur is planned to be commissioned in FY26–27, which will add another 250,000 units and take the total capacity at the location to 1 million units per annum.

Across its facilities in Haryana and Gujarat, Maruti Suzuki currently produces around 2.4 million vehicles annually, against an installed capacity of about 2.6 million units. The company said rising domestic and export demand is driving the need for capacity expansion to support future market growth.

The Rs 49.6 billion investment will cover land acquisition, development and preparatory activities, and will be funded through a mix of internal accruals and external borrowings. The company added that further phases related to the installation of production capacity and overall capital expenditure will be taken up following additional board approvals as the project progresses.

The board of Maruti Suzuki India Limited has approved the acquisition of land in Gujarat to expand its production capacity by up to 1 million units a year, involving an investment of around Rs 49.6 billion. The land will be acquired at the Khoraj Industrial Estate from the Gujarat Industrial Development Corporation, the company said in a regulatory filing on Monday. The proposed site will be Maruti Suzuki’s second manufacturing facility in Gujarat. Currently, the carmaker operates three plants at Hansalpur, each with an annual capacity of 250,000 units. A fourth plant at Hansalpur is planned to be commissioned in FY26–27, which will add another 250,000 units and take the total capacity at the location to 1 million units per annum. Across its facilities in Haryana and Gujarat, Maruti Suzuki currently produces around 2.4 million vehicles annually, against an installed capacity of about 2.6 million units. The company said rising domestic and export demand is driving the need for capacity expansion to support future market growth. The Rs 49.6 billion investment will cover land acquisition, development and preparatory activities, and will be funded through a mix of internal accruals and external borrowings. The company added that further phases related to the installation of production capacity and overall capital expenditure will be taken up following additional board approvals as the project progresses.

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