The funding would be done through a combination of internal accruals & external borrowings, said the company in a regulatory filing.In a bid to address rising demand in the domestic and export markets, Maruti Suzuki India on Monday said its board has approved the acquisition of land at the Khoraj Industrial Estate in Gujarat for a proposed expansion of its vehicle manufacturing capacity.
India’s largest carmaker said the acquisition is expected to add up to 1 million units per annum to its capacity.
The board will finalise the timeline and phased installation of this additional capacity at a later stage.
The board has approved an outlay of ₹4,960 crore towards land acquisition for development and preparatory activities. Though the company has yet to decide on the overall investment required for this expansion, it will be finalised once the phasing plan is finalised.
The funding would be done through a combination of internal accruals & external borrowings, said the company in a regulatory filing.
The local unit of Japanese Suzuki Motor 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 the company. The existing capacity is fully utilised, the filing said.
The timeline for the commencement of production at the proposed expanded facility has not yet been announced.
Maruti Suzuki India produced over 22.55 lakh vehicles in calendar year 2025, its highest-ever annual production, marking the second consecutive year in which the carmaker crossed the 20 lakh unit mark. The top five models by production during the year were the Fronx, Baleno, Swift, Dzire and Ertiga.
