Maruti Suzuki to Invest ₹10,189 Crore in New Gujarat Plant, Targets 2.5 Lakh Annual Capacity
New Delhi, March 24: Maruti Suzuki India on Tuesday announced a major expansion plan, with its board approving an investment of ₹10,189 crore to establish the first phase of a new manufacturing facility in Gujarat.First Phase Capacity Planned at 2.5 Lakh Units Annually
The company said the initial phase of the plant, located at Khoraj Industrial Estate, will have an annual production capacity of 2.5 lakh vehicles. This will mark Maruti Suzuki’s fifth manufacturing facility in India.According to the regulatory filing, the first phase is expected to be operational by 2029, subject to market conditions.
Investment to Be Funded Through Internal Resources
Maruti Suzuki confirmed that the ₹10,189 crore investment will be financed through internal accruals. The spending will cover not only the car manufacturing facility but also shared infrastructure and facilities designed to support future expansion at the site.Expansion Comes Amid Full Capacity Utilisation
The automaker currently operates manufacturing plants in Gurugram, Manesar, and Kharkhoda in Haryana, along with Hansalpur in Gujarat. Its total installed capacity stands at around 24 lakh units per year, with an operational capability of approximately 26 lakh units annually.The company noted that its existing production capacity is fully utilised, including output from the former Suzuki Motor Gujarat, which has now been merged into Maruti Suzuki India.
Earlier Land Acquisition and Larger Investment Plan
In January, Maruti Suzuki’s board had approved a separate ₹4,960 crore proposal to acquire land at the Khoraj Industrial Estate from the Gujarat Industrial Development Corporation for capacity expansion.The latest investment is part of a broader long-term strategy. In 2024, Suzuki Motor Corporation President Toshihiro Suzuki had announced plans to invest ₹35,000 crore in India to set up a second manufacturing facility in Gujarat with a total capacity of 10 lakh units per year.
Maruti Suzuki Shares Edge Higher
Following the announcement, Maruti Suzuki shares were trading 1.10 percent higher at ₹12,489.65 apiece on the BSE.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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