Maruti Suzuki to boost capacity by 1 million units in India expansion
- IBEF
- January 13, 2026
Maruti Suzuki India Limited is to establish a new manufacturing plant in Gujarat to produce an additional one million vehicles annually. This will increase Maruti Suzuki's production capacity and serve to support the growing need for new vehicles throughout India. The new plant will be in the Khoraj Industrial Zone and will provide Maruti Suzuki with the ability to increase its production capabilities for new vehicle sales across India.
The board has granted its authority to make an initial investment of Rs. 4,960 crore (US$ 598 million) for the purpose of acquiring, developing, and preparing land for factory operations. This will be financed through both internally generated funds and external borrowings. The expansion is part of a larger initiative by both Maruti Suzuki and its parent company, Suzuki Motor Corporation, to continue increasing manufacturing capability in India and develop India as a global automotive manufacturing hub. As domestic sales of entry-level vehicles have risen and are expected to continue to do so, there is an increased need for manufacturing capacity for these products. The Company’s recent sales performance has been strong, as evidenced by growing dealer sales. The increased capacity will help support future domestic sales growth as well as future export plans and further reinforce India’s place in the global automotive supply chain.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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