Suzuki to Set Up New Manufacturing Plant in India

• Maruti Suzuki approves ₹4,960 crore Gujarat investment
• New Gujarat plant to add 10 lakh vehicles annually
• Hansalpur expansion to boost EV-linked capacity by 2027

Maruti Suzuki India Limited (MSIL), the largest automobile manufacturer in India, has approved a ₹4,960 crore investment to expand its manufacturing operations in Gujarat. The firm's board has authorized the acquisition of land at the Khoraj Industrial Estate in Sanand from the Gujarat Industrial Development Corporation (GIDC) for establishing a second passenger vehicle factory in the state.

The proposed plant will provide an additional annual output of ten lakhs passenger vehicles in Gujarat. MSIL currently operates a manufacturing facility in Hansalpur with a present capacity of 750,000 units per annum.

At the Vibrant Gujarat Global Summit 2024, the automaker had announced plans to add a fourth production line at the Hansalpur plant, keeping in mind the expected rise in electric vehicle production. The new line is scheduled to begin operations in 2026–27 and will increase the plant’s annual capacity to 10 lakh units.

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Maruti Suzuki has several plants in Gurugram, Manesar, Kharkhoda and Hansalpur with a combined annual output capacity of 2.4 million units and a peak output capacity of 2.6 million vehicles per year. Maruti Suzuki stated that its current output capacity is fully utilized and, as a result, it must now make investments into increasing capacity.

Details of the commissioning schedule will be finalized in phases; however, the Board has already agreed to an allocation of ₹4,960 crore for land purchase, site preparation and development expenses associated with the Khoraj facility, which is located approximately 30km from Ahmedabad.

“The investment will be funded through a combination of internal accruals and external borrowings,” the company said in a regulatory filing.

The expansion reinforces Maruti Suzuki’s long-term plan to position Gujarat as a key manufacturing and export hub. The Hansalpur facility, which earlier operated as Suzuki Motor Gujarat before being merged with Maruti Suzuki, continues to play a crucial role in exports.