Maruti Suzuki to Invest Rs 4,960 Cr in Gujarat for 1M Unit Plant

Maruti Suzuki India Ltd has approved an investment of ₹4,960 crore to expand its manufacturing footprint in Gujarat, with plans to add up to 1 million units of annual production capacity. The decision was cleared by the company’s board and comes as existing plants operate close to full utilisation amid steady demand in the passenger vehicle market.

The investment will be used to acquire land and undertake initial development work for a new manufacturing facility at the Khoraj Industrial Estate in Gandhinagar district. The land will be purchased from the Gujarat Industrial Development Corporation (GIDC). The proposed plant is expected to be developed in phases, with timelines and final capital expenditure to be decided as the project progresses.

Maruti Suzuki said the funding for the project will be arranged through a combination of internal accruals and borrowings. The current approval covers preparatory activities, including land acquisition and related infrastructure work, which are required before construction of the plant begins.

The planned expansion builds on Maruti Suzuki’s existing presence in Gujarat, where it already operates a large production facility at Hansalpur. Gujarat has emerged as a key manufacturing base for the automaker, complementing its plants in Haryana. Together, Maruti Suzuki’s current facilities have an installed capacity of about 2.4 million vehicles per year.

Industry analysts note that the additional capacity is aimed at supporting both domestic sales and exports. Maruti Suzuki has been increasing exports to markets in Africa, Latin America and West Asia, while demand in India has remained resilient, particularly in the small car and utility vehicle segments.

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Once operational, the new Gujarat facility is expected to help the company manage capacity constraints, improve supply stability and support future model launches. The expansion also aligns with the company’s longer-term plan to strengthen India’s role as a production hub within Suzuki Motor Corporation’s global manufacturing network.