Maruti Suzuki Eyes Major ₹14,000 Cr Capex for Expansion in FY27.

Maruti Suzuki India Ltd (MSIL) recently announced plans to invest ₹14,000 crore in the current financial year (FY27) to expand its production capacity, even as the company reported a decline in fourth-quarter profits.

The country’s largest passenger vehicle maker said the investment will be used to add an additional 5 lakh units of annual capacity across two facilities—one in Kharkhoda, Haryana, and another in Hansalpur, Gujarat—taking its total installed capacity beyond the current 24 lakh units per annum.

The expansion aligns with MSIL’s broader growth strategy, which includes setting up a new manufacturing facility in Gujarat. Earlier this year, in January, the company’s board approved the acquisition of land at Khoraj Industrial Estate in Sanand for its fifth plant, earmarking ₹4,950 crore for land purchase and initial site development. This was followed in March by approval of an additional ₹10,189 crore investment for phase-I development, which will create a production capacity of 2.5 lakh units annually along with shared infrastructure.

On the financial front, MSIL reported a 6.45% year-on-year decline in consolidated net profit to ₹3,659 crore for the fourth quarter ended March 31, compared with ₹3,911.1 crore in the same period last year. The company attributed the drop to mark-to-market impacts, even as it achieved record vehicle sales during the quarter.