Maruti Suzuki Invests ₹4,960 Crore in Gujarat Expansion

Maruti Suzuki, India’s leading car manufacturer, has recently announced a significant investment in Gujarat aimed at expanding its production capabilities. The company's board approved a proposal worth ₹4,960 crore to acquire land at the Khoraj Industrial Estate. This strategic move is expected to enhance Maruti's manufacturing capacity by up to 1 million units, addressing the increasing demand in the Indian automotive sector.

The approval was granted during a board meeting, setting the stage for a crucial expansion that aligns with Maruti's growth plans. The company emphasized that the total investment would be finalized in phases, ensuring a well-structured approach to capacity installation and development.

Currently, Maruti Suzuki operates with an annual capacity of around 24 lakh units across its plants located in Gurugram, Manesar, Kharkhoda, and Hansalpur in Gujarat. Notably, this existing capacity is fully utilized, indicating a pressing need for expansion to meet market demands.

Furthermore, the company plans to fund this expansion through a combination of internal accruals and external borrowings. This shows Maruti's confidence in its growth trajectory and its commitment to maintaining a strong market presence. The investment is part of a larger vision, as Suzuki Motor Corporation's President, Toshihiro Suzuki, announced a substantial ₹35,000 crore investment for a second manufacturing facility in Gujarat, with a projected capacity of 10 lakh units per annum.

With this expansion, Maruti Suzuki is poised to solidify its leadership in the Indian automotive industry, catering to the growing needs of consumers and the ever-evolving market landscape. As the automotive sector in India continues to thrive, Maruti's strategic investments will play a pivotal role in shaping its future and meeting the demands of a competitive market.