Maruti Suzuki To Invest ₹10,189 Crore In Gujarat Plant, Targets 2.5 Lakh Units Capacity In Phase 1 By 2029

Mumbai: Maruti Suzuki India has announced a big investment of Rs 10,189 crore to expand its manufacturing capacity in Gujarat. The company’s board has approved setting up the first phase of a new plant at Khoraj Industrial Estate. This will be the company’s fifth manufacturing facility in India.

Production Capacity Details

In the first phase, the plant will have a capacity to produce 2.5 lakh vehicles per year. The company said this capacity is expected to be ready by 2029, depending on market demand and conditions.

This phase will also include building basic infrastructure and facilities that will support future expansion at the same location.

Funding Through Internal Resources

Maruti Suzuki said the entire investment for this phase will be funded through its internal accruals. This means the company will use its own earnings instead of borrowing money.

Existing Capacity Fully Utilised

Currently, Maruti Suzuki has a production capacity of around 24 lakh units annually across its plants in Gurugram, Manesar, Kharkhoda (Haryana) and Hansalpur (Gujarat). The company also has the ability to produce up to 26 lakh units per year.

It noted that its existing capacity is fully utilised, which is one of the main reasons behind this expansion plan.

Earlier Plans And Future Vision

Earlier in January, the company had approved a Rs 4,960 crore proposal to acquire land at Khoraj for expanding production. This land is being acquired from Gujarat Industrial Development Corporation.

In 2024, Suzuki Motor Corporation had also announced a much larger plan. The company aims to invest Rs 35,000 crore to set up a second major manufacturing facility in Gujarat with a total capacity of 10 lakh units per year.

Market Reaction

Following the announcement, Maruti Suzuki shares were trading 1.10% higher at Rs 12,489.65 on the BSE, showing positive investor response.