Maruti Suzuki Clears Land Buy for 35,000-Crore Gujarat Plant
Automobile market leader Maruti Suzuki India said its board has cleared a Rs4,960-crore plan to acquire land and expand manufacturing operations in Gujarat.
The company's board, at its meeting held on Monday, granted approval to acquire land for the expansion of production capacity at Khoraj Industrial Estate from Gujarat Industrial Development Corporation, and "the proposed capacity addition is up to 1 million (10 lakh) units", according to reports.
On the overall investment, the company said it would be finalised and approved by the board while framing the phases of installation of capacity.
"The cost of land acquisition, development and preparatory activities approved by the board is Rs4,960 crore," it added.
The mode of financing would be a combination of internal accruals and external borrowings, Maruti Suzuki India said.
The total existing capacity of the company is around 24 lakh units per annum in Gurugram, Manesar, Kharkhoda (all in Haryana), and Hansalpur (Gujarat), with a capability to produce 26 lakh units per annum, it added.
This includes the units produced at erstwhile Suzuki Motor Gujarat Pvt Ltd, which has been amalgamated with the company. The existing capacity is fully utilized, the company added.
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In 2024, Suzuki Motor Corporation President Toshihiro Suzuki announced that the company's Indian arm, Maruti Suzuki India (MSI), would invest Rs35,000 crore to set up its second manufacturing facility in Gujarat with an installed production capacity of 10 lakh units per annum.
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The expansion in Gujarat aligns with Maruti Suzuki’s long-term growth strategy as it looks to strengthen its manufacturing footprint closer to key markets and export hubs. Gujarat has emerged as a strategic base for the automaker due to its investor-friendly policies, robust infrastructure, and proximity to ports, enabling efficient logistics and cost optimization.