Maruti Suzuki India on Tuesday approved an investment of Rs 10,189 crore to set up 250,000 units per annum production capacity in the first phase of its upcoming manufacturing facility at Khoraj Industrial Estate in Gujarat, as the company moves to ease capacity constraints amid sustained demand.
The company said its board has cleared the addition of the first phase at the new plant, which will be its fifth manufacturing facility in the country. The capacity is expected to come on stream by 2029, subject to market conditions, Maruti Suzuki India said in a regulatory filing.
Funding for the first phase
The first phase will be funded through internal accruals and will include investments not just for the car manufacturing lines but also for common infrastructure that can support future expansion at the site. “This includes investment for the first phase of the car manufacturing plant having an annual manufacturing capacity of 250,000 units and some common infrastructure and facilities for future plants,” the company said.
Maruti Suzuki’s existing production base spans facilities at Gurugram, Manesar and Kharkhoda in Haryana, along with Hansalpur in Gujarat. The company’s current installed capacity stands at about 2.4 million units per annum, with a capability to produce up to 2.6 million units annually, including output from the erstwhile Suzuki Motor Gujarat, which has since been amalgamated with the company.
The company said that its existing capacity is fully utilised, underscoring the need for fresh investments to sustain growth. The Khoraj facility forms part of a broader capacity expansion strategy that the company has been outlining over the past year.
In January, the board had approved a Rs 4,960-crore proposal to acquire land from the Gujarat Industrial Development Corporation for expanding production capacity at Khoraj Industrial Estate.
Long term plans for India
The latest investment also ties in with parent Suzuki Motor Corporation’s longer-term plans for India. In 2024, its president Toshihiro Suzuki had announced that Maruti Suzuki India would invest Rs 35,000 crore to set up a second manufacturing facility in Gujarat with an installed capacity of 1 million units per annum.
The announcement follows a 12 January 2026 letter in which Maruti Suzuki informed stock exchanges about its board approval to acquire land at Khoraj Industrial Estate from the Gujarat Industrial Development Corporation (GIDC). Tuesday’s disclosure formalises the next step, with the board approving the first phase of capacity addition at the newly acquired site.
The new investment also supports Maruti Suzuki’s target of regaining a 50% passenger vehicle market share by FY2030, up from roughly 40–41% in early 2025. In the calendar year 2025, the company produced more than 1.84 million vehicles for the first time, driven by strong domestic demand and increasing exports. The additional capacity is expected to provide the company with greater flexibility to meet both domestic and international demand.
Once all planned expansions are completed, Maruti Suzuki’s cumulative manufacturing capacity—including ongoing and upcoming projects—is expected to reach 4.35 million units, exceeding its stated target of four million units by 2031
The phased build-out at Khoraj is expected to help the company align capacity with demand over the medium term, while retaining flexibility on timelines depending on market conditions.
As part of its mid-term management plan, parent Suzuki Motor Corporation has committed capital expenditure of 1,200 billion yen (around ₹70,000 crore) for capacity expansion, new model development, carbon neutrality initiatives, and quality improvements.
The capacity addition comes at a time when Maruti Suzuki is also strengthening its export push. With India emerging as a manufacturing hub for markets such as Africa, Latin America, and Southeast Asia, the additional capacity will give the company the flexibility to serve both domestic and international customers.