Maruti Suzuki India’s boards of directors has approved a major plan to buy Land in Gujarat and expand the company’s manufacturing capacity. The company will invest Rs.4,960 crore of this purpose. In a filling to the stock exchange, Maruti Suzuki said that the decision was taken during a board meeting held on Monday. As per the plan, the company will purchase land from the Gujarat Industrial Development Corporation GIDC at the Khoraj Industrial Estate. This land will be used to increase the company’s vehicle production capacity. Maruti Suzuki has said that the proposed expansion will allow it to produce up to 10 lakh additional vehicles.
Maruti Suzuki Production
This move shows the company’s strong focus on meeting future demand and strengthening its production network in India. Gujarat has already become an important manufacturing hub for Maruti Suzuki, and this new investment will further boost its presence in the state. With this expansion, Maruti Suzuki aims to improve its ability to supply cars faster and support its long-term growth plans.
Maruti Suzuki India has said that the total investment for this project will be finalized in stages as the new capacity is set up and will be approved by the board of directors. The company added that the cost approved by the board for buying the land, developing it and making it ready for use is, Rs.4,90 crore.
The company also shared that this project will be funded through a mix of its internal earnings and external borrowing. Maruti Suzuki, currently has manufacturing plants in Gurugram, Manesar and kharkhoda in Haryana, and hansalpur in gujarat. Together, these plants give the company an existing annual production capacity of around 24 lakh vehicles. its total installed capacity stands at about 26 lakh vehicles per year.
With this strong manufacturing base and the new land purchase, Maruti Suzuki is preparing to further increase its production ability to meet growing demand in the coming years. These facilities also include the production units of Suzuki Motor Gujarat Private Limited, which has now been merged into Maruti Suzuki India. According to the company, its existing production capacity is already being fully used. In 2024, Suzuki Motor corporation chairman toshihiro suzuki had announced that Marui Suzuki India would invest Rs.35,000 crore to set up a second manufacturing plant in gujarat. This new plant will have an annual production capacity of 10 lakh vehicles.
Maruti Suzuki continues to strengthen its position in India with such large investments. The company already holds the biggest share in the Indian automobile market, and these expansion plans show its confidence in long-term demand growth in the country.
