Maruti Suzuki bets big on growth with Rs 35,000-crore Gujarat plant

The auto major, which has got board approval early this week for Rs 4,960 crore investment to acquire ‍land for the plant, said the production at the plant is expected to begin in financial year 2029.
The new plant is expected to add up one million units a year to Maruti Suzuki’s manufacturing capacity.
The new plant is expected to add up one million units a year to Maruti Suzuki’s manufacturing capacity.File photo/ANI
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CHENNAI: Maruti Suzuki India has announced a major expansion of its manufacturing footprint, unveiling plans to invest about ₹35,000 crore in setting up a new automobile plant in Gujarat, underlining its long-term confidence in India’s passenger vehicle market and export potential.

The proposed facility will significantly augment the country’s largest carmaker’s production capacity over the coming years as it prepares for sustained growth in domestic demand and rising overseas shipments. The new plant is expected to be developed in phases and will eventually add up to one million units a year to Maruti Suzuki’s manufacturing capacity, making it one of the company’s largest investments in recent times.

The new plant is expected to add up one million units a year to Maruti Suzuki’s manufacturing capacity.
Maruti board clears Rs 4,960-crore push to boost Gujarat Manufacturing Hub

Gujarat has emerged as a key manufacturing hub for Maruti Suzuki, complementing its long-established operations in Haryana. The company has steadily expanded its presence in the state, benefiting from supportive industrial policies, robust infrastructure and proximity to ports that aid exports. The new investment further strengthens Gujarat’s position as a critical pillar in Maruti Suzuki’s production and logistics strategy.

The expansion is also expected to generate substantial employment, both directly at the plant and indirectly through vendors, suppliers and ancillary industries, giving a boost to the local economy. For Maruti Suzuki, the project aligns with its broader strategy of building scale, improving operational efficiency and meeting evolving consumer preferences, including the transition towards cleaner and more technology-driven vehicles.

Industry observers see the investment as a strong signal of Maruti Suzuki’s intent to defend and grow its market leadership amid intensifying competition and a rapidly changing automotive landscape. As the Indian passenger vehicle market continues to expand, the new Gujarat plant is likely to play a central role in supporting the company’s growth ambitions in the latter part of the decade.

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