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Maruti Suzuki clears ₹4,960 crore plan to add up to 10 lakh units of capacity in Gujarat
Maruti Suzuki has approved a ₹4,960 crore land acquisition in Gujarat to expand manufacturing, with plans to add up to 10 lakh vehicles annually.
Maruti Suzuki India has taken another step to scale up its manufacturing footprint in the country, with its board approving a major investment plan focused on Gujarat.
Notify meCapacity expansion planned in Gujarat
The company said its board has cleared a proposal worth ₹4,960 crore for acquiring land and carrying out initial development work at the Khoraj Industrial Estate in Gujarat. The land will be purchased from the Gujarat Industrial Development Corporation, and the expansion could eventually support production of up to 10 lakh vehicles annually.
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While the board has approved the land acquisition and preparatory costs, Maruti Suzuki said the total investment for the plant will be finalised later, once the different phases of capacity installation are planned and placed before the board.
Funding and current capacity status
According to the regulatory filing, the ₹4,960 crore outlay will be funded through a mix of internal accruals and external borrowings. The company also noted that its existing manufacturing capacity is currently running at full utilisation.
At present, Maruti Suzuki has manufacturing plants in Gurugram, Manesar and Kharkhoda in Haryana, along with its facility at Hansalpur in Gujarat. Together, these plants have an installed capacity of around 24 lakh units per year, with the ability to stretch production to about 26 lakh units annually. This figure includes output from the former Suzuki Motor Gujarat facility, which has since been merged into Maruti Suzuki India.
(Also Read: Maruti announces January 2026 discounts of up to ₹1.30 lakh across Nexa range)
Long-term Gujarat plans already announced
The latest approval aligns with the company’s longer-term expansion strategy in the state. In 2024, Suzuki Motor Corporation president Toshihiro Suzuki had announced plans to invest around ₹35,000 crore in India to set up a second manufacturing facility in Gujarat. That proposed plant is expected to have an annual capacity of 10 lakh units once fully operational.
Maruti Suzuki India remains the country’s largest carmaker, and the Gujarat expansion underlines its focus on adding capacity to meet sustained demand in the Indian market.
