Maruti Suzuki India is preparing to significantly increase its manufacturing footprint to address peak capacity utilization across its existing plants. The company’s board has formally approved the acquisition of land at the Khoraj Industrial Estate in Gujarat, a move intended to facilitate a long-term production expansion of up to one million additional units per annum.
Infrastructure Investment and Financial Strategy
The automaker has authorized an initial capital outlay of Rs. 4,960 crore to cover the land purchase and early-stage development. While the comprehensive project cost will be determined once the specific phasing is finalized, the company plans to fund the expansion through a blend of internal reserves and external borrowings. Key details of the proposal include:
- Location: Khoraj Industrial Estate, Gujarat.
- Capacity Target: 1 million additional vehicles annually.
- Funding: Mix of internal accruals and debt.
- Objective: Supporting growth in both domestic sales and export volumes.
Operational Necessity and Current Output
The expansion comes as Maruti Suzuki’s current infrastructure reaches its operational limits. The manufacturer presently maintains an installed capacity of roughly 2.4 million units across its facilities in Gurugram, Manesar, Kharkhoda, and Hansalpur. While the company can maximize output to approximately 2.6 million units, it confirmed that current lines are fully utilized. In the 2025 calendar year, the brand recorded its highest-ever annual production, rolling out over 2.255 million vehicles. This performance was largely supported by strong demand for several core models:
- Compact and Premium Hatchbacks: Swift and Baleno.
- Sedans and SUVs: Dzire and Fronx.
- Multi-Purpose Vehicles: Ertiga.
Project Timeline and Implementation
Maruti Suzuki has not yet disclosed a specific commencement date for production at the new site. The board is expected to finalize the implementation schedule and the phase-wise commissioning of the new capacity as planning progresses. This new site will complement the existing Hansalpur facility, which was recently integrated fully into Maruti Suzuki India’s operations following the merger with Suzuki Motor Gujarat.
