E-Paper
Maruti Suzuki approves ₹5,000-crore land deal to boost production capacity by 1 million units in Gujarat
The expansion comes as Maruti Suzuki’s existing production capacity of approximately 24 lakh units per year across four car plants is “fully utilised”.
Maruti Suzuki India Ltd. has approved a plan to acquire land in Gujarat, as the nation’s largest carmaker seeks to expand its annual production capacity by up to 10 lakh units (1 million) to meet rising demand.
The board of the New Delhi-based carmaker cleared an investment of ₹4,960 crore for land acquisition, development, and preparatory activities at Khoraj Industrial Estate, according to an exchange filing Monday. The land will be acquired from the Gujarat Industrial Development Corporation.
The expansion comes as Maruti’s existing production capacity of approximately 24 lakh units per year across its car plants in Gurugram, Manesar, Kharkhoda, and Hansalpur is “fully utilised”, according to the filing. The company's current production capability stands at 26 lakh units, inclusive of the output from the recently amalgamated Suzuki Motor Gujarat Pvt. Ltd.
While the timeline and total capital expenditure for capacity expansion on the new land parcel will be finalised in subsequent phases, the initial land deal will be financed through a mix of internal accruals and external borrowings. The automaker cited “growth in market demand including exports” as the primary rationale for the aggressive capacity ramp-up.
