Maruti Suzuki Approves Land Deal Worth ₹4,960 Crore to Boost Gujarat Capacity

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Bhupendra Singh Chundawat

Maruti Suzuki Approves Land Deal Worth ₹4,960 Crore to Boost Gujarat Capacity

Maruti Suzuki India has approved a land acquisition deal worth ₹4,960 crore to expand its manufacturing capacity in Gujarat. The company announced that its board has given the nod for acquiring land from the Gujarat Industrial Development Corporation at the Khoraj Industrial Estate for this purpose.

The acquisition aims to increase production capacity by nearly one million vehicles annually. Maruti Suzuki stated in an exchange filing that the funds approved by the board will cover land acquisition, development, and initial activities. The company will finalise and approve the total investment based on the phased capacity expansion plans.

Funding for this expansion will come from internal accruals and external borrowings. Currently, Maruti Suzuki’s total production capacity across its plants in Gurugram, Manesar, Kherki Daula, and Hansalpur stands at approximately 2.4 million units per year, which can be increased to 2.6 million units. This figure includes units from the former Suzuki Motor Gujarat Private Limited, which has been merged with Maruti Suzuki.

The company noted that the existing manufacturing capacity is fully utilised. In 2025, Maruti Suzuki produced over 2.25 million vehicles, marking its highest-ever annual production and the second consecutive year it surpassed the 2 million mark. This production includes vehicles for domestic sales, exports, and OEM supply.

Maruti Suzuki’s Managing Director and CEO, Hisashi Takeuchi, highlighted that increased localisation has helped the company achieve this scale while maintaining the global competitiveness of India’s automotive manufacturing ecosystem.

In 2025, the company exported 395,000 vehicles, the highest annual export figure to date, representing a 21% increase compared to 2024. Holding over 40% market share in the domestic passenger vehicle segment, Maruti Suzuki plans to further enhance its manufacturing capacity to 4 million units annually to meet growing domestic demand and international supply requirements.

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