Maruti Suzuki India Ltd. has received board approval to invest ₹4,960 crore in Gujarat to expand its manufacturing capacity, marking a major step in its long-term growth strategy. The company will acquire land at the Khoraj Industrial Estate from the Gujarat Industrial Development Corporation (GIDC), enabling it to add one million units to its annual production capacity to meet rising domestic and global automobile demand.
Expanding the Gujarat Manufacturing Footprint
The proposed facility will be Maruti Suzuki’s second manufacturing unit in Gujarat. Currently, the automaker operates its Hansalpur plant, which houses three manufacturing units with an annual capacity of 2.5 lakh vehicles each, taking total capacity to 7.5 lakh units per annum. A fourth plant at Hansalpur is planned to be commissioned in FY27, which will raise the Hansalpur facility’s capacity to one million vehicles annually.
With the addition of the new manufacturing unit, Gujarat’s total contribution to Maruti Suzuki’s production will rise to two million vehicles per year.
Strategic Goal: 4 Million Units by 2031
The expansion aligns with Maruti Suzuki’s broader plan to scale up its overall production capacity to four million units by 2031. At present, the company operates with a cumulative capacity of 2.6 million vehicles across its plants in Gurugram, Manesar and Kharkhoda in Haryana, and Hansalpur in Gujarat. According to a regulatory filing, this capacity is fully utilised, underscoring the need for further expansion.
In the calendar year 2025, Maruti Suzuki produced more than 1.84 million vehicles for the first time, driven by robust domestic demand and growing exports. The company said the additional one million units of capacity would provide much-needed headroom for India’s largest passenger vehicle manufacturer.
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.
As part of its mid-term management plan, parent Suzuki Motor Corporation has committed capital expenditure of 1,200 billion yen (approximately ₹70,000 crore) towards capacity expansion, new model development, carbon neutrality initiatives and quality improvements.
Strengthening India as a Global Export Hub
The capacity addition also comes at a time when Maruti Suzuki is strengthening its export push. With India emerging as a manufacturing hub for global markets such as Africa, Latin America and Southeast Asia, the additional capacity will give the company greater flexibility to serve both domestic and international demand.
The timeline for the capacity addition and the final investment outlay will be approved by the board as the project is implemented in phases. The expansion will be funded through a mix of internal accruals and external borrowings.
The move reinforces Maruti Suzuki’s intent to consolidate its leadership in India’s fast-growing passenger vehicle market while building scale for global opportunities.