Maruti Suzuki Board Approves Land Acquisition for Capacity Expansion in Gujarat

12 Jan 2026 , 11:53 AM

Maruti Suzuki India Ltd said on Monday, January 12, that its board has approved the acquisition of land at the Khoraj Industrial Estate from the Gujarat Industrial Development Corporation for expanding its production capacity.

The company said its existing manufacturing capacity is currently fully utilised, prompting the need for additional capacity to meet rising demand. Maruti Suzuki’s total existing production capacity stands at around 24 lakh vehicles per annum across its plants in Gurugram, Manesar, Kharkhoda and Hansalpur.

The company added that it has the capability to produce up to 26 lakh units per annum, including output from Suzuki Motor Gujarat Pvt Ltd, which has since been amalgamated with Maruti Suzuki.

The proposed expansion will involve adding production capacity of up to one million units. The board will finalise the phased installation of the new capacity and approve the same at a later stage.

Maruti Suzuki said the total cost approved for land acquisition, development and preparatory activities is ₹4,960 crore. The company plans to fund the investment through a combination of internal accruals and external borrowings. The capacity expansion is being undertaken in response to strong growth in market demand, including rising export volumes, the company said.

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