Maruti Suzuki India Limited’s (MSIL) board has approved land acquisition in Gujarat to expand production capacity by up to 10 lakh units annually. This move involves an investment of around Rs 4,960 crore for land purchase, development, and preparatory works at the Khoraj Industrial Estate from the Gujarat Industrial Development Corporation.
“…Board today granted approval to acquire land for expansion of production capacity at Khoraj Industrial Estate from Gujarat Industrial Development Corporation,” said MSIL in a regulatory filing on Monday.
This will be the carmaker’s second manufacturing facility in Gujarat. As of now, the Hansalpur facility has three plants with 2.5 lakh each annual capacity. The fourth plant at Hansalpur is planned to be commissioned in FY26-27 and will add another 2.5 lakh units capacity. With this the Hansalpur capacity will reach 10 lakh units per annum.
Maruti Suzuki operates at around 24 lakh units annual production across facilities in Haryana and Gujarat, with installed capacity at 26 lakh units. The company cites rising domestic and export demand as the key driver for this capacity ramp-up to meet market growth.
The Rs 4,960 crore outlay covers land acquisition, development, and preparatory activities, funded through internal accruals and external borrowings. Further phases for installing production capacity and total capital expenditure will follow board approvals as development progresses.