Maruti Suzuki to invest US$ 1.09 billion for new Gujarat plant, 2.5 lakh unit capacity
- IBEF
- March 25, 2026
Maruti Suzuki India Limited has approved a major capital expenditure to expand its manufacturing footprint in Gujarat, signalling strong confidence in sustained domestic and export demand. The company will invest Rs. 10,189 crore (US$ 1.09 billion) to establish the first phase of a new greenfield facility at the Khoraj Industrial Estate. This investment will support the addition of an annual production capacity of 2.5 lakh vehicles, with the plant expected to be operational by 2029. The move comes as the company’s existing manufacturing capacity spread across facilities in Gurugram, Manesar, Kharkhoda, and Gujarat is nearing full utilisation, necessitating further expansion to maintain growth momentum.
The project will be funded through internal resources and includes the development of core infrastructure to support future capacity additions at the site. Once operational, the Gujarat facility will become a key pillar in Maruti Suzuki’s long-term strategy to scale up production and strengthen its leadership in India’s passenger vehicle market. The expansion is also aligned with rising demand trends, including exports, reinforcing India’s position as a global automobile manufacturing hub. With this investment, the company aims to enhance operational efficiency, improve supply capabilities, and cater to evolving consumer demand while supporting the broader growth of the domestic automotive ecosystem.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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