Has Maruti Suzuki Secured a ₹4,960 Crore Deal for Capacity Expansion in Gujarat?
Synopsis
Maruti Suzuki India Limited has taken a significant step by approving a ₹4,960 crore land acquisition to boost its manufacturing capacity in Gujarat. This expansion will support the production of up to 1 million vehicles, enhancing the company's ability to meet domestic and international demand amid record-breaking outputs.
Key Takeaways
Maruti Suzuki approved a ₹4,960 crore land acquisition.
The expansion is aimed at increasing production capacity by up to 1 million units .
Current manufacturing capacity is around 24 lakh units annually.
Record production of over 22.55 lakh vehicles achieved in 2025.
Maruti plans to enhance capacity to 4 million units per annum.
New Delhi, Jan 12 (NationPress) Maruti Suzuki India Limited, recognized as the largest car manufacturer in India, has announced that its board has sanctioned a proposal amounting to ₹4,960 crore aimed at acquiring land to enhance its manufacturing capabilities in Gujarat.
This land acquisition targets the expansion of production capacity at Khoraj Industrial Estate, sourced from the Gujarat Industrial Development Corporation. The anticipated capacity addition is set to reach up to 1 million (10 lakh) units, as stated in the exchange filing.
The board has approved the cost covering land acquisition, development, and preparatory activities, totaling ₹4,960 crore. The comprehensive investment will be finalized and authorized by the board during the planning phases of capacity installation.
Maruti Suzuki has disclosed that financing will be derived from a mix of internal accruals and external loans.
Currently, the existing capacity stands at approximately 24 lakh units annually across facilities in Gurugram, Manesar, Kharkhoda, and Hansalpur, with a potential output of 26 lakh units annually. This figure includes production from the former Suzuki Motor Gujarat Private Limited, which has been merged with the company.
Maruti Suzuki indicated that the existing capacity is fully utilized.
In 2025, the manufacturer achieved a record production of over 22.55 lakh vehicles, marking its highest output in a calendar year. This is the second consecutive year that Maruti Suzuki has surpassed 20 lakh units in annual production, which encompasses vehicles intended for domestic sales, exports, and OEM supplies.
The Managing Director and CEO, Hisashi Takeuchi, emphasized that a substantial degree of localization has enabled the company to achieve such scale while preserving the global competitiveness of India's automotive manufacturing sector.
In 2025, Maruti Suzuki exported 3.95 lakh vehicles, the highest in any calendar year, reflecting a growth exceeding 21 percent compared to 2024.
Holding over 40 percent of the domestic market share in the passenger vehicle segment, the company aims to scale its manufacturing capacity to 4 million units annually to cater to growing domestic demand and international markets.
Point of View
Maruti Suzuki's expansion plans signify a robust response to increasing market demands. This strategic investment not only reflects the company's commitment to growth but also enhances India's automotive manufacturing landscape, ensuring competitiveness on a global scale.
NationPress
20 Jun 2026
Frequently Asked Questions
What is the total investment approved by Maruti Suzuki for land acquisition?
The total investment approved by Maruti Suzuki for land acquisition is ₹4,960 crore.
What is the purpose of the land acquisition in Gujarat?
The land acquisition is intended for the expansion of Maruti Suzuki's manufacturing capacity in Gujarat, aiming to increase production by up to 1 million units.
What current capacity does Maruti Suzuki have?
Maruti Suzuki currently has an existing capacity of around 24 lakh units per annum.
How many vehicles did Maruti Suzuki produce in 2025?
In 2025, Maruti Suzuki produced over 22.55 lakh vehicles, marking its highest output in a calendar year.
What percentage of the domestic market does Maruti Suzuki hold?
Maruti Suzuki holds over 40 percent of the domestic market share in the passenger vehicle segment.
