Maruti Suzuki is working to enhance production flexibility across its facilities in Gujarat and Haryana. The company commenced commercial production at its new Kharkhoda Phase-I facility in March 2025. The plant has an annual capacity of 250,000 units.
“We are making our plants more flexible so that more lines can manufacture more models. And we are also taking care that the newer lines that are established can manufacture EVs also,” said Rahul Bharti, Chief Investor Relations Officer.
Maruti Suzuki reported capital expenditure of approximately INR 84 billion for FY25. The company expects FY26 capex to range between INR 80 to 90 billion, according to Chief Financial Officer Arnab Roy.
In FY25, the company produced 2 million vehicles, which it stated is a milestone within the Indian passenger vehicle sector.
In the fourth quarter of FY25, the company’s operating margin was also affected by several factors. Steel-related commodity costs contributed to a 20 basis points decline, while product mix changes led to a 40 basis points reduction. Other expenses, including maintenance, CSR, digitalization, and R&D, had a 90 basis points adverse impact. These were partly offset by lower sales promotion costs and improved operating leverage, each contributing positively by 40 basis points. Foreign exchange gains, primarily from hedging, added 20 basis points to non-operating income.
The initial operations at the Kharkhoda facility have impacted the company’s profit margins, with around 30 basis points attributed to overheads and depreciation from the new facility.
On the regulatory front, Maruti Suzuki stated that its steel imports are currently unaffected by the recently introduced minimum import price mechanism. Bharti noted, “We just hope that the steel industry doesn’t use it to raise commodity prices in the market and we will be monitoring the situation and reporting to the government if necessary.” He also mentioned that the company is monitoring ongoing Free Trade Agreement discussions involving India with the UK, EU, and US.
Maruti Suzuki India Limited manufactures and sells passenger vehicles in the Indian market. It operates production facilities in Haryana and Gujarat and is a subsidiary of Suzuki Motor Corporation, Japan.