On Tuesday, Maruti Suzuki India declared that its board has given its consent to acquire a piece of land in the Khoraj Industrial Estate located in the district of Gandhinagar in Gujarat. The company said in a regulatory filing that it will buy the land of the Gujarat Industrial Development Corporation.
India's largest carmaker declared that it has a present installed capacity of approximately 2.4million units annually, with a potential to expand production to 2.6million units annually through optimisation.
Notably, this capacity is distributed in its manufacturing facilities in Gurugram, Manesar and Kharkhoda in the state of Haryana and Hansalpur in the state of Gujarat. It also incorporates the output of the former Suzuki Motor Gujarat plant that has since been completely integrated with Maruti Suzuki India.
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Maruti Suzuki plots road to 4 million units
With existing lines fully utilised, the company acknowledged the need for fresh investments to support growth over the next decade. The board has approved a proposal to add up to 1 million units per annum of new capacity at the Khoraj location. Maruti Suzuki, however, stopped short of revealing which models will roll out of the proposed facility.
The company clarified that the timeline for commissioning the additional capacity has not yet been finalised. The schedule will be decided later.
For now, the board has approved an outlay of ₹4,960 crore towards purchasing the land, developing it, and carrying out preparatory activities at the Khoraj Industrial Estate.
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Maruti Suzuki said the proposed investment will be funded through a combination of internal accruals and external borrowings. However, the total investment required for the expansion, excluding land costs, will also be determined at a subsequent stage.
With India now the world’s third-largest passenger vehicle market, Maruti Suzuki has set an ambitious target of reaching an overall production capacity of around 4 million units annually in the country by FY31.
