Maruti Suzuki plans production expansion to address strong demand & reduce waiting
India’s largest carmaker, Maruti Suzuki India, is preparing to increase its production capacity in the next financial year as demand for passenger vehicles continues to remain strong. The company plans to add capacity for around 5 lakh additional vehicles annually in order to better meet domestic demand and reduce waiting periods for customers.
At present, Maruti Suzuki operates with a total installed production capacity of approximately 26 lakh units per year across its manufacturing facilities in Haryana and Gujarat. However, the company is currently running its plants at full capacity, which has limited its ability to fully cater to growing customer demand.
The automaker currently has a pending order backlog of roughly 2 lakh vehicles. Inventory levels are also lower than usual, with total stock equivalent to around 12 days of sales. Of this, nearly seven days’ worth of vehicles are still in transit within the supply chain. Under normal circumstances, dealerships typically maintain inventory levels closer to 30 days.
Recent booking trends indicate strong demand across multiple vehicle segments. The company reported a notable increase in bookings during the previous month, while sales of utility vehicles in particular saw healthy growth. During the same period, Maruti Suzuki dispatched around 1.61 lakh passenger vehicles, a figure broadly similar to its performance in the corresponding month last year.
Parent company Suzuki Motor Corporation has also highlighted the importance of expanding production capacity in India. The Indian subsidiary currently contributes more than half of the global sales volume for the Japanese automaker, underlining the market’s strategic importance.
To address demand and support future growth, new production lines are being added at existing facilities. The second production line at the Kharkhoda plant in Haryana is expected to begin operations in the first quarter of the next financial year. Meanwhile, the fourth line at the Hansalpur facility in Gujarat is scheduled to start operations during the second quarter.
Each of these new lines is expected to add around 2.5 lakh units of annual capacity. However, production will gradually ramp up after commissioning, meaning their full contribution will be realised over time.
The company is also mindful of the risks associated with extended waiting periods. Limited production capacity and lower inventory levels could lead some customers to consider alternative brands if delivery timelines stretch too long. As a result, Maruti Suzuki aims to gradually improve inventory levels closer to its usual benchmark while continuing to respond to strong demand in the market.
