CHENNAI: Maruti Suzuki India Ltd said on Monday that its board has approved a proposal involving an outlay of Rs 4,960 crore to acquire land for expanding its manufacturing capacity in Gujarat, marking one of the company’s biggest single-location investments as it prepares for the next phase of growth in India’s passenger vehicle market.
The automaker said the proposal involves adding capacity of up to 1 million units, according to a regulatory filing.
"The investment is aimed at securing land parcels that will support the expansion of vehicle and powertrain production facilities at its Gujarat operations, which have become a key hub for Maruti’s manufacturing and exports. The move is designed to give the company adequate headroom to add capacity over the coming years as demand for small cars, compact SUVs and hybrid models continues to rise," the company said.
Maruti has been steadily ramping up its footprint in Gujarat, which already hosts multiple assembly and powertrain plants and plays a critical role in supplying both the domestic market and overseas buyers. The latest approval underlines the company’s intention to anchor a significant portion of its future production in the state, benefiting from its established supplier ecosystem, port connectivity and policy support.
The land acquisition is expected to pave the way for new assembly lines and related infrastructure, allowing Maruti to respond more quickly to shifts in consumer preferences and regulatory requirements, including tighter emission norms and the transition towards cleaner technologies. It also reflects the company’s confidence in medium- to long-term demand for passenger vehicles in India, even as near-term sales can be affected by interest rates, fuel prices and broader economic conditions.
Maruti, which commands a dominant share of the Indian car market, has been working to expand capacity to avoid supply bottlenecks that have constrained volumes in the past. The Gujarat facilities, in particular, have been central to this strategy, supporting models across multiple segments and acting as an export base for select markets.
The ₹4,960-crore proposal will be implemented in phases, aligned with Maruti’s production and product rollout plans. Once completed, the expanded footprint is expected to strengthen the company’s ability to launch new models, improve delivery timelines and maintain its leadership in one of the world’s fastest-growing auto markets.