Maruti Suzuki to add 2.5 lakh units capacity in Gujarat with ₹10,189 crore investment

Maruti Suzuki India Limited on Tuesday approved the first phase of capacity addition at its upcoming facility in Gujarat, marking a key step in its long-term expansion plans.

The company’s board has cleared a capacity addition of 2.5 lakh vehicles per year at the Khoraj Industrial Estate, with a total investment of ₹10,189 crore. The project is expected to be completed by 2029, subject to market conditions, the company said in its regulatory filing.

The investment includes the cost of setting up the manufacturing plant as well as common infrastructure and facilities that can support future expansion at the site. The project will be funded through internal accruals.

Maruti Suzuki said its existing capacity of around 24 lakh units per annum across facilities in Gurugram, Manesar, Kharkhoda and Hansalpur is currently fully utilised, underlining the need for additional capacity. The expansion is aimed at meeting growing domestic demand as well as export opportunities.

The approval follows the company’s earlier decision in January to acquire land at the Khoraj site from the Gujarat Industrial Development Corporation.

Following the announcement, shares of Maruti Suzuki ended at ₹12,490, up ₹135 or 1.09% on the NSE.