Maruti Suzuki approves Gujarat land purchase for planned 1-million-unit capacity expansion
Maruti Suzuki India has taken a step toward expanding its manufacturing footprint by approving the purchase of land at the Khoraj Industrial Estate in Gujarat. The acquisition is intended to support rising demand in both domestic and export markets as the company’s current manufacturing capacity remains fully utilised.
Capacity addition of up to 1 million units planned
According to the regulatory filing, the land will be used to set up additional production lines that could eventually contribute up to one million units per year. The board will determine the implementation schedule and phase-wise commissioning of this new capacity at a later date.
Financial outlay and funding plan
Maruti Suzuki’s board has approved an allocation of Rs. 4960 crore for land acquisition and early-stage development work. The total project cost for the expansion will be finalised once the phasing plan is completed. The company indicated that funding for the initiative will be arranged through a mix of internal resources and external borrowings.
Current capacity running at full utilisation
The automaker currently has an installed capacity of around 2.4 million units annually across its facilities in Gurugram, Manesar, Kharkhoda and Hansalpur, with the ability to scale output to roughly 2.6 million units. This figure includes production from the former Suzuki Motor Gujarat plant, which has since been merged with Maruti Suzuki India. The company stated that its existing capacity is fully utilised.
Production performance in 2025
In calendar year 2025, Maruti Suzuki produced over 2.255 million vehicles – its highest-ever annual figure and the second consecutive year above the 2 million mark. Models such as the Fronx, Baleno, Swift, Dzire and Ertiga were among the highest contributors to production volumes.
Timeline yet to be disclosed
The company has not announced when production from the proposed new facility will commence. Further details are expected once planning and approvals progress.
