Maruti Suzuki clears Rs 4,960 crore land acquisition plan for Gujarat expansion

Car market leader Maruti Suzuki India on Monday said its board has approved a Rs 4,960-crore proposal to acquire land and expand its manufacturing capacity in Gujarat.

The company’s board, at its meeting held on Monday, granted approval to acquire land for the expansion of production capacity at Khoraj Industrial Estate from the Gujarat Industrial Development Corporation. The proposed capacity addition is up to 1 million (10 lakh) units, Maruti Suzuki India said in a regulatory filing.

On the overall investment, the company said it would be finalised and approved by the board while framing the phases of installation of capacity.

“The cost of land acquisition, development and preparatory activities approved by the board is Rs 4,960 crore,” the company said.

Maruti Suzuki India said the mode of financing would be a combination of internal accruals and external borrowings.

The company’s total existing manufacturing capacity is around 24 lakh units per annum across its facilities in Gurugram, Manesar and Kharkhoda in Haryana, and Hansalpur in Gujarat, with a capability to produce about 26 lakh units per annum.

This includes units produced at the erstwhile Suzuki Motor Gujarat Pvt Ltd, which has since been amalgamated with the company, the filing said. The existing capacity is fully utilised, Maruti Suzuki India added.

In 2024, Suzuki Motor Corporation President Toshihiro Suzuki had announced that the company’s Indian arm, Maruti Suzuki India, would invest Rs 35,000 crore to set up its second manufacturing facility in Gujarat with an installed production capacity of 10 lakh units per annum.