Maruti Suzuki India Limited (MSIL), the country’s largest passenger vehicle manufacturer, has unveiled plans to expand its manufacturing footprint in Gujarat with an investment of Rs. 4,960 crore.
The company’s board has approved the purchase of land at the Khoraj Industrial Estate in Sanand from the Gujarat Industrial Development Corporation (GIDC).
This land will be used to establish Maruti Suzuki’s second passenger vehicle manufacturing facility in the state, marking a major step in its capacity expansion strategy.
According to reports, once operational, the proposed plant will have the ability to produce up to 10 lakh passenger vehicles annually. This will further strengthen Gujarat’s role in Maruti Suzuki’s manufacturing network.
At present, Maruti Suzuki operates a plant at Hansalpur in Gujarat with an annual capacity of 7.5 lakh vehicles. During the Vibrant Gujarat Global Summit 2024, the automaker had also announced plans to add a fourth production line at this facility, primarily to cater to the expected growth in electric vehicle demand. This new line is scheduled to become operational in 2026–27 and will increase Hansalpur’s total capacity to 10 lakh units per year.
Across India, Maruti Suzuki currently runs manufacturing units in Gurugram, Manesar, Kharkhoda and Hansalpur. Together, these plants have an installed capacity of around 24 lakh vehicles annually, with a peak capability of nearly 26 lakh units.
According to the company, these facilities are now operating at full utilisation, prompting the need for additional investments.
While the detailed execution timeline and overall project cost will be finalised in stages, the board has already cleared an initial outlay of Rs. 4,960 crore. This amount will be used for land acquisition, infrastructure development and preliminary work for the Khoraj facility, which is located roughly 30 km from Ahmedabad.
Maruti Suzuki stated in a regulatory filing that the investment will be financed through a mix of internal resources and external borrowings.
The latest expansion underscores the company’s long-term vision of developing Gujarat as a strategic manufacturing and export base. The Hansalpur plant, which earlier operated as Suzuki Motor Gujarat before being merged with Maruti Suzuki, already serves as a key hub for exports, and the new investments are expected to further enhance the state’s importance in the company’s global operations.
Also Read: Maruti Announces Rs 35,000 Crore Plan For New Gujarat Plant https://www.vibesofindia.com/maruti-announces-rs-35000-crore-plan-for-new-gujarat-plant/
