Maruti Suzuki Expands Capacity with ₹10,189 Crore Gujarat Investment

Maruti Suzuki India Ltd has decided to allocate ₹10,189 crore towards the establishment of a new manufacturing unit in Gujarat. This is the biggest capacity expansion move so far by the country's largest carmaker, aimed at meeting rising demand.

The capital will be used for the construction of a new factory at Khoraj Industrial Estate, which will be able to manufacture 2.5 lakh vehicles per year.

Key Details Of The Expansion Plan

The company’s board cleared the proposal on 24 March 2026.

• Investment size: ₹10,189 crore

• New capacity: 2.5 lakh units annually

• Location: Khoraj Industrial Estate, Gujarat

• Completion timeline: Expected by 2029

• Funding: Entirely through internal accruals without any debt component

The project will include the assembly line as well as the common infrastructure that is required to support future expansion.

What Is The Reason For This Expansion?

Right now, Maruti Suzuki has manufacturing units across Gurugram, Manesar, Kharkhoda, and Hansalpur. Together, they have an installed capacity of around 24 lakh units a year, with a peak capacity of about 26 lakh units. These plants are currently operating at nearly 100% utilisation.

Because of this, the company has very little room to increase production without adding a new plant. This move should help cut down waiting time for customers and boost future sales.

What Are The Future Plans For This Project?

The Khuraj plant is going to be equipped with four units, each having a capacity of 2.5 lakh vehicles. With this, it can expand to a full capacity of 10 lakh vehicles annually, which will make it one of the biggest automobile manufacturing plants in India.

Gujarat already has Maruti Suzuki’s Hansalpur plant and several global auto and component companies. With this new investment, Gujarat is likely to become an even larger centre for large-scale vehicle production, exports, and possibly EV manufacturing in the future.

Also Read - Sagility Shares Advance Nearly 8% In Early Trade On BSE

Maruti Suzuki’s Performance and Growth Outlook

Maruti Suzuki said in its investor presentation that it achieved its highest-ever annual production of 2.1 million units in FY25. The company is now aiming to scale up its production capacity to 4 million units by 2030.

On the market side, Maruti Suzuki’s stock closed at ₹12,464 on Tuesday, up around 1% during the day. However, it has seen some pressure recently, falling around 15% over the last one month.

Sources:

Financial Express

ET