Maruti Suzuki India Limited (MSIL) has taken a significant step toward strengthening its manufacturing footprint after receiving Board approval to acquire land at the Khoraj Industrial Estate in Gujarat from the Gujarat Industrial Development Corporation (GIDC). The move is part of the company’s long-term strategy to address rising demand in both the domestic and export markets.
Why Maruti Suzuki Is Expanding
Maruti Suzuki’s existing manufacturing plants are currently operating at near full capacity, reflecting sustained demand for its vehicles in India and overseas. With limited headroom for further production at current facilities, the company sees the need to create additional infrastructure to support future growth and maintain its leadership position in the passenger vehicle market.
Current Manufacturing Capacity
At present, Maruti Suzuki has a combined production capacity of around 24 lakh units per annum across its plants located in Gurugram, Manesar, Kharkhoda, and Hansalpur. Including the capacity of Suzuki Motor Gujarat Private Limited, which has been recently amalgamated, the company’s overall manufacturing capability stands at approximately 26 lakh units per annum.
Planned Capacity Addition
The proposed expansion aims to add up to 1 million (10 lakh) units per annum to Maruti Suzuki’s production capacity. This additional capacity will help the company cater to growing vehicle demand while also supporting its export ambitions.
Investment and Funding Plan
The Board has approved an initial investment of ₹4,960 crore towards land acquisition, development, and preparatory activities at the Khoraj Industrial Estate. The total investment for the complete expansion will be finalized in phases and approved by the Board as the project progresses.
To fund this expansion, Maruti Suzuki plans to use a mix of internal accruals and external borrowings, ensuring a balanced and prudent financing approach.
Timeline and Next Steps
At this stage, the company has not announced a specific timeline for when the new capacity will become operational. The installation phases and execution schedule will be determined as detailed planning advances and receives further Board approvals.
The Bigger Picture
This expansion reflects Maruti Suzuki’s confidence in long-term demand growth and its commitment to strengthening India’s automotive manufacturing ecosystem. By investing early in capacity creation, the company is positioning itself to meet future market needs without operational constraints.