Maruti Suzuki India Limited has taken a major strategic step to strengthen its long-term manufacturing capabilities by approving the acquisition of land for capacity expansion at the Khoraj Industrial Estate in Gujarat. The land will be acquired from the Gujarat Industrial Development Corporation, marking another milestone in the company’s expansion roadmap as it prepares to meet rising domestic and export demand.
The approval was granted by the Board of Directors on January 12, 2026, in compliance with SEBI Listing Regulations. This move reflects Maruti Suzuki’s focus on scaling operations in line with India’s growing automobile market and its ambition to deepen its export footprint.
At present, Maruti Suzuki operates manufacturing facilities in Gurugram, Manesar, Kharkhoda and Hansalpur, with a total installed capacity of around 24 lakh units per annum. These facilities have the capability to produce up to 26 lakh vehicles annually, including output from the erstwhile Suzuki Motor Gujarat Private Limited, which has since been amalgamated into the company. Importantly, the existing production capacity is currently fully utilised, underscoring the need for expansion.
The proposed expansion at Khoraj Industrial Estate is expected to add up to 1 million units of annual production capacity. While the exact timeline and phased installation plan are yet to be finalised, these details will be approved by the Board at a later stage as part of the capacity planning process. Similarly, the total investment required for the capacity addition will be determined once the installation phases are formally structured.
For now, the Board has approved an investment of Rs 4,960 crore towards land acquisition, development and preparatory activities related to the project. The expansion will be funded through a combination of internal accruals and external borrowings, ensuring financial flexibility while supporting long-term growth.
