"Maruti Suzuki scales up: Board approves land for ₹35,000 crore expansion in Gujarat."

The board of Maruti Suzuki India Ltd. (MSIL) recently approved the acquisition of land from the Gujarat Industrial Development Corporation (GIDC) for expanding its production capacity at the Khoraj Industrial Estate in Sanand, Gujarat.

The proposed facility will be Maruti Suzuki’s second manufacturing plant in the State, after its existing unit at Hansalpur. The company’s current manufacturing footprint spans Gurugram, Manesar, Kharkhoda and Hansalpur, with a total installed capacity of about 24 lakh vehicles per annum and a production capability of around 26 lakh units annually. This figure includes output from the former Suzuki Motor Gujarat Private Ltd., which has since been amalgamated with MSIL.

With existing capacity fully utilised, the company has moved ahead with plans for a new plant. The proposed expansion at Khoraj will add up to 10 lakh units per annum, to be commissioned in phases.

According to a regulatory filing, the board has approved an outlay of ₹4,960 crore towards land acquisition, development and preparatory activities. The investment will be funded through a mix of internal accruals and external borrowings. The new facility will cater to both domestic and export markets.

In January 2024, Suzuki Motor Corporation President Toshihiro Suzuki had announced that MSIL would make further investments in Gujarat through a new greenfield plant. The upcoming unit is targeted to commence operations in FY29 and will involve a total investment of ₹35,000 crore, excluding land acquisition costs.

Once the new plant becomes operational, Maruti Suzuki’s total annual production capacity in Gujarat is expected to reach 2 million units. The company aims to scale up its overall manufacturing capacity in India to around 4 million units by FY2030–31 to support future growth in the domestic automobile market.