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Maruti Suzuki India has approved an investment of INR 4,960 crore to acquire land and undertake preparatory work for expanding its manufacturing footprint in Gujarat. The expansion at Khoraj Industrial Estate will support an additional vehicle production capacity of up to one million units annually, addressing capacity constraints as existing plants operate at full utilisation. The investment covers land acquisition and development, with further spending to be decided in phases. The move aligns with Suzuki Motor Corporation's broader India investment plans and highlights Gujarat's appeal as an automotive manufacturing hub. The expansion is expected to boost industrial activity, strengthen logistics and port-linked infrastructure, and drive demand for industrial land and workforce housing in the region.
Maruti Suzuki India has approved a proposal to invest INR 4,960 crore for land acquisition and preparatory work to expand its manufacturing capacity in Gujarat. The decision was taken at a board meeting held on Monday, marking another step in the company's long-term production expansion strategy in the state. Advertisement
According to a regulatory filing, the board has cleared the acquisition of land at the Khoraj Industrial Estate from the Gujarat Industrial Development Corporation. The proposed expansion will support an additional manufacturing capacity of up to one million vehicles annually. The company stated that the final investment amount for the overall project will be determined in phases and placed before the board as capacity installation plans are firmed up.
The approved INR 4,960 crore outlay will cover land acquisition, development, and other preparatory activities required before construction and installation begin. Maruti Suzuki said the expansion will be funded through a mix of internal accruals and external borrowings, ensuring financial flexibility while supporting long-term growth.
Maruti Suzuki currently operates manufacturing facilities in Gurugram, Manesar, and Kharkhoda in Haryana, along with Hansalpur in Gujarat. The company's existing production capacity stands at around 2.4 million units per annum, with an installed capability to produce up to 2.6 million units annually. This capacity includes output from the former Suzuki Motor Gujarat Private Limited facility, which has since been merged into Maruti Suzuki India.
The company noted that its existing manufacturing capacity is fully utilised, underscoring the need for additional production facilities to meet future demand. The proposed Gujarat expansion is expected to play a key role in addressing capacity constraints while supporting the company's growth plans in the domestic and export markets.
In 2024, Suzuki Motor Corporation President Toshihiro Suzuki had announced a broader investment plan of INR 35,000 crore for India. As part of this plan, Maruti Suzuki India is set to establish its second manufacturing facility in Gujarat, with an installed capacity of one million units per annum. The latest land acquisition approval aligns with this previously stated commitment.
Gujarat continues to attract large-scale automotive and manufacturing investments due to its established industrial infrastructure, availability of developed land, and connectivity to ports and logistics networks. The proposed expansion at Khoraj Industrial Estate is expected to further strengthen the state's position as a key automotive manufacturing hub.
The move is also likely to drive demand for industrial land, supporting infrastructure, and workforce housing in and around the project area, reinforcing Gujarat's role in India's manufacturing-led industrial growth.
Source: PTI
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