Maruti Suzuki to Invest Rs 10,189 Crore in New Gujarat Plant

Maruti Suzuki India Limited's board has approved the first phase of a new car manufacturing plant at Khoraj Industrial Estate in Gujarat. The company aims to add capacity for 2,50,000 vehicles per year by 2029. This expansion will help meet rising domestic and export demand for passenger vehicles.

Key Highlights

• Maruti Suzuki board approves new plant in Gujarat for 2.5 lakh units by 2029
• First-phase investment totals Rs 10,189 crores funded through internal accruals
• The current capacity of 24 lakh units per year is fully utilized.
• Expansion aims to meet rising domestic and export demand
• No details yet on future phases at the Khoraj site

Key Details of the Expansion

The board approved the project at a meeting on 24 March 2026, which started at 12:30 p.m. and ended at 2:15 p.m. Maruti Suzuki disclosed the decision to the National Stock Exchange and BSE, in compliance with SEBI Listing Regulations. Sanjeev Grover, executive officer and company secretary, signed the formal filing.

The company will invest Rs 10,189 crores in the first phase. This amount covers the construction of a full car manufacturing plant with an annual capacity of 2,50,000 units. The investment also includes common infrastructure and facilities to support future expansion at the same site. Maruti Suzuki will fund the project entirely through internal accruals, with no debt financing planned.

The first phase is expected to become operational by 2029, subject to market conditions. The company cited strong growth in both domestic and export markets as the main reasons for the expansion. Maruti Suzuki aims to strengthen its position in India and abroad through this project.

Current Capacity and Strategic Context

Maruti Suzuki currently has a manufacturing capacity of about 24 lakh units per year. Its facilities are located in Gurugram, Manesar, Kharkhoda, and Hansalpur. The company can reach a peak output of 26 lakh units per year, including production from the former Suzuki Motor Gujarat Private Limited, now merged with Maruti Suzuki.

The company stated that its existing capacity is fully utilized. This underlines the need for additional production capability. The new plant will be located in Khoraj Industrial Estate, which is developed by the Gujarat Industrial Development Corporation (GIDC). GIDC is a state government agency responsible for acquiring and developing land for industry.

Setting up the plant in Gujarat aligns with the trend of automakers expanding in western India. The region has seen significant industrial investment in recent years. Maruti Suzuki had earlier informed the stock exchanges on 12 January 2026 about its board's approval to acquire land at Khoraj from GIDC. The current announcement marks the next step, with formal approval for the first phase of capacity addition.

Market Position and Future Plans

Maruti Suzuki is India's largest passenger vehicle manufacturer by market share. The company sells vehicles under both the Maruti Suzuki and Suzuki brands. Its parent company, Suzuki Motor Corporation of Japan, holds a majority stake.

India's passenger vehicle market continues to grow due to rising incomes, urbanization, and a growing middle class. Maruti Suzuki's expansion at Khoraj is designed to address capacity constraints and prepare for future demand. The company has not yet announced details or timelines for further phases at the site.

Also Read: Maruti Suzuki to launch 7 new SUVs by 2032 with diverse powertrains

Conclusion

Maruti Suzuki’s Rs 10,189 crore Gujarat expansion marks a pivotal step in strengthening its leadership in India’s automotive landscape. By 2029, the new plant will not only bolster production capacity but also support export operations, local employment, and supply chain growth.