Suzuki Announces Plans for New Production Facility in India

Suzuki Motor Corporation has moved ahead with plans to expand its manufacturing presence in India by approving a new vehicle production facility in Gujarat. The move reinforces the country’s role in the company’s global strategy. Its Indian subsidiary, Maruti Suzuki India Limited, has received board approval to acquire land at the Khoraj Industrial Estate in Sanand for the proposed plant.

The land parcel measures about seven million square metres and is intended to support a facility with a planned annual production capacity of up to one million vehicles once fully developed. The land acquisition cost is estimated at around ₹4,960 crore, or roughly US$550 million. The project represents one of Suzuki’s largest manufacturing commitments in India so far.

The new plant is expected to cater to both domestic demand and vehicle exports. India has become a key automobile manufacturing hub for Suzuki, supplying vehicles to markets in Africa, Latin America and Southeast Asia. Rising demand at home and steady exports have increased pressure on existing capacity.

Maruti Suzuki already operates multiple manufacturing facilities in Gujarat and Haryana, including plants at Hansalpur and Mehsana. The planned Sanand facility will add to this network and provide flexibility for future model launches, including vehicles designed to meet tighter emissions standards.

The expansion also fits within Suzuki’s wider India growth strategy, which includes preparations for electric and hybrid vehicles and deeper localisation of components. These steps are aimed at improving cost efficiency and meeting changing regulatory and consumer requirements.

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Industry analysts say the investment reflects confidence in India’s manufacturing ecosystem, the state’s industrial policy environment, and long-term automotive sector growth. Once operational, the plant is expected to support job creation, attract suppliers, and strengthen Gujarat’s position as a major automotive hub.