Maruti Suzuki board clears ₹4,960-crore proposal to acquire land in Gujarat, eyes up to 1 million-unit capacity addition

Maruti Suzuki India on Monday said its board has approved the acquisition of land for expansion of production capacity in Gujarat.

In a regulatory filing, the country’s largest carmaker said the board has approved an expenditure of ₹4,960 crore towards land acquisition, development and preparatory activities at Khoraj Industrial Estate in Gujarat.

The land will be acquired from the Gujarat Industrial Development Corporation.

The period for adding the proposed capacity and the overall investment outlay for the expansion will be finalised and approved by the board while framing the phases of installation, the filing said.

The proposed capacity addition would be up to one million units, it added.

The company currently has a total installed capacity of around 24 lakh units per annum across its facilities in Gurugram, Manesar, Kharkhoda and Hansalpur, with a capability to produce up to 26 lakh units annually.

This includes output from the erstwhile Suzuki Motor Gujarat Private Limited, which has since been amalgamated with Maruti Suzuki India, it added.

The expansion will be funded through a combination of internal accruals and external borrowings.

In 2024, Suzuki Motor Corporation President Toshihiro Suzuki announced that the company's Indian arm, Maruti Suzuki India (MSI), would invest ₹35,000 crore to set up its second manufacturing facility in Gujarat with an installed production capacity of 10 lakh units per annum.

Shares of Maruti Suzuki were trading ₹16,295.00 apiece around noon, 1.25% lower than the previous close.