Maruti Suzuki India Limited approved the acquisition of land at Khoraj Industrial Estate in Gujarat to support a planned expansion of its vehicle production capacity. The proposed capacity addition is up to 1 million units.
The company said the period within which the additional capacity will be installed will be finalised and approved by the board while framing the phases of capacity installation. Details on the overall investment required for the full expansion will also be determined at that stage.
The board has approved expenditure of INR 49.6 billion towards land acquisition, development and preparatory activities. Maruti Suzuki said the funding will be through a combination of internal accruals and external borrowings.
The approval was granted by the board of directors and represents a preparatory step toward adding new manufacturing capacity to address expected growth in domestic and export demand. The land will be acquired from the Gujarat Industrial Development Corporation. The proposed expansion is aimed at strengthening the company’s manufacturing base, which currently includes facilities in Gurugram, Manesar, Kharkhoda and Hansalpur.
Maruti Suzuki said its total existing production capacity is around 2.4 million units per annum, with an installed capability to produce up to 2.6 million units annually. This includes output from the erstwhile Suzuki Motor Gujarat Private Limited, which has since been amalgamated with the company.
Maruti Suzuki’s existing capacity is fully utilised. The company cited growth in market demand, including exports, as the rationale for the proposed capacity expansion. No further details were disclosed regarding product mix, employment generation or commissioning timelines associated with the additional capacity.
Maruti Suzuki India Limited manufactures and sells passenger vehicles, with production operations across multiple locations in India serving domestic and overseas markets.