Maruti Suzuki India Limited has approved a Rs 4,960-crore proposal to acquire land in Gujarat for expanding its manufacturing capacity. The company aims to increase production capacity at Khoraj Industrial Estate by up to 1 million units. The board has sanctioned the cost for land acquisition, development, and preparatory activities.
The financing for this expansion will involve a mix of internal accruals and external borrowings, according to Maruti Suzuki India. The company’s current capacity stands at around 24 lakh units per annum across various locations, with the potential to produce 26 lakh units annually. This includes units from the amalgamated Suzuki Motor Gujarat Private Limited.
Maruti Suzuki India highlights that its existing capacity is fully utilized. In 2025, the automaker achieved its highest-ever output of over 22.55 lakh vehicles in a calendar year. The company’s Managing Director and CEO, Hisashi Takeuchi, attributed this success to a high level of localization that maintains India’s global competitiveness in automotive manufacturing.
In 2025, Maruti Suzuki India also recorded its highest-ever exports of 3.95 lakh vehicles in a calendar year, marking a growth of over 21% from the previous year. With a significant share of the domestic passenger vehicle market, the company plans to boost its manufacturing capacity to 4 million units per annum to cater to increasing domestic demand and international markets.
