Maruti Suzuki Board Approves Land Acquisition in Gujarat for One Million Vehicle Capacity Expansion!
Maruti Suzuki India Limited has taken a major step toward expanding its manufacturing footprint with the Board of Directors approving the acquisition of land in Gujarat for a large-scale production capacity expansion. The decision, disclosed to stock exchanges on January 12, 2026, highlights Maruti Suzuki’s long-term strategy to address rising demand in the Indian passenger vehicle market while strengthening its position in export markets.
The Board has approved the acquisition of land at the Khoraj Industrial Estate in Gujarat from the Gujarat Industrial Development Corporation (GIDC). The proposed site will be developed into a new manufacturing facility with an annual production capacity of up to one million vehicles, making it one of the company’s most significant capacity additions to date. To support this initiative, the Board has sanctioned an investment of approximately ₹4,960 crore, covering land acquisition, development costs, and other preparatory expenditures required to set up the facility.
Maruti Suzuki currently operates manufacturing plants in Gurugram, Manesar, Kharkhoda, and Hansalpur, with a combined installed capacity of around 24 lakh vehicles per annum. Through operational efficiencies and debottlenecking initiatives, the company can produce up to 26 lakh vehicles annually. This capacity includes production from the former Suzuki Motor Gujarat Private Limited, which has since been merged into Maruti Suzuki India Limited. According to the company’s regulatory filing, this capacity is now fully utilized, leaving limited headroom to support further growth without additional investment.
The decision to add new capacity is driven by continued growth in India’s passenger vehicle market and expanding export opportunities. Maruti Suzuki has seen sustained demand across multiple segments, and the new Gujarat facility is expected to play a critical role in meeting future volume requirements. In addition to increasing output, the location is likely to enhance supply chain efficiencies, strengthen regional manufacturing presence, and support smoother logistics for both domestic distribution and exports.
While the Board has approved the land acquisition and initial investment, the timeline for capacity installation and the total project cost beyond the current approval will be finalized in a phased manner. These details will be reviewed and approved by the Board as the project progresses. Maruti Suzuki has indicated that the expansion will be funded through a balanced mix of internal accruals and external borrowings, ensuring that the company maintains financial flexibility and balance sheet strength while executing the project.
This expansion marks an important milestone in Maruti Suzuki’s long-term growth strategy as India’s largest passenger vehicle manufacturer. By investing in new manufacturing infrastructure, the company aims to reinforce its leadership position, improve responsiveness to market demand, and support the government’s broader Make in India initiative. The Gujarat expansion underscores Maruti Suzuki’s confidence in the long-term growth prospects of the Indian automotive industry and its commitment to building scale, resilience, and competitiveness in the years ahead.
