**Maruti Suzuki Plans ₹4,960 Crore Expansion in Gujarat**
Maruti Suzuki India, the leading car manufacturer in the country, has announced a significant investment plan to enhance its manufacturing capabilities in Gujarat. On January 12, the company’s board approved a proposal amounting to ₹4,960 crore for land acquisition aimed at expanding production capacity at the Khoraj Industrial Estate, sourced from the Gujarat Industrial Development Corporation. This expansion is expected to add up to 1 million units to the company’s production capacity.
The board’s decision was made during a meeting on Monday, where they outlined the initial steps for the capacity increase. The total investment will be finalized and approved in phases as the company progresses with the installation of the new capacity. The funding for this expansion will be a mix of internal accruals and external borrowings.
Currently, Maruti Suzuki operates with an annual production capacity of approximately 2.4 million units across its facilities in Gurugram, Manesar, Kharkhoda (all in Haryana), and Hansalpur (Gujarat). The company has the potential to produce up to 2.6 million units per year, including output from the former Suzuki Motor Gujarat Pvt Ltd, which has now merged with Maruti Suzuki. Notably, the existing capacity is fully utilized, indicating a strong demand for the company’s vehicles.
In a related announcement, Suzuki Motor Corporation President Toshihiro Suzuki revealed plans for Maruti Suzuki India to invest ₹35,000 crore in establishing a second manufacturing facility in Gujarat, which will also have an installed production capacity of 1 million units per annum.
As Maruti Suzuki continues to expand its footprint in India, this investment underscores the company’s commitment to meeting the growing demand for vehicles in the region.
**FAQ**
**What is Maruti Suzuki’s recent investment in Gujarat?**
Maruti Suzuki has approved a ₹4,960 crore investment to acquire land and expand its manufacturing capacity in Gujarat, aiming to add up to 1 million units to its production capabilities.
