The company, which currently has an installed annual capacity of 2.6 million units across plants in Haryana and Gujarat, is operating at full capacity and facing supply constraints.The country’s largest carmaker Maruti Suzuki will add capacity to produce 500,000 more cars in the upcoming financial year to meet a spike in demand in the local market, post the reset in GST rates.
Maruti Suzuki has total installed capacity of 2.6 million units per annum across its facilities in Haryana and Gujarat in the country.
The company—which has pending orders for about 200,000 vehicles—said it is operating at 100 per cent capacity and is unable to fully meet customer demand. Maruti Suzuki has stocks of about 12 days, of which 7 days worth of inventory is in transit. Normally, the company has stocks of 30 days in dealerships.
“Our bookings grew by 20 per cent last month. We are constrained by capacity and are calibrating our production every month to ensure that no customer be it for hatchbacks or sedans or utility vehicles have to wait for too long to get their vehicles”, Partho Banerjee, senior executive officer (marketing and sales) at Maruti Suzuki said, adding last month the company focussed of utility vehicles whose sales grew 12 per cent in the period.
In all, Maruti Suzuki dispatched 161,000 passenger vehicles last month, compared to 160,791 sold in February 2025.
Parent Suzuki Motor Corporation (SMC) in a post-earnings call last month said, “Currently, we produce 220,000-230,000 units per month, with 170,000-180,000 units per month for India domestic, and about 50,000 units per month for exports, etc. Exports are in demand in Africa, the Middle East, etc., and with expanded production capacity next fiscal year (two new plants), about 20,000 units/month will be added, which we look forward to.”
Indian subsidiary Maruti Suzuki currently contributes 56 per cent to total sales at SMC. Next fiscal year, Suzuki said it expects capacity additions of 250,000 units per year each at the new plants in India. While the second line at Kharkhoda (Haryana) is scheduled to commerce operations in the first quarter, the fourth line at Hansalpur (Gujarat) is set to be commissioned in the second quarter. “Since ramp-up production is necessary, contributions will be phased. Kharkhoda is expected to contribute from the first quarter of next fiscal year, Hansalpur from the second quarter”, SMC added.
“There is a risk that customers who cannot wait for delivery may switch to other companies, so it is desirable to secure inventory close to the standard level (about 30 days is desirable), but the situation remains tight, and we see strong supply-demand”, SMC said.
