Maruti Suzuki to invest ₹4,960 crore to set up second plant in Gujarat

Maruti Suzuki India Ltd on Monday said it will invest Rs 4,960 crore to set up its second plant in Gujarat as the country’s biggest carmaker looks to ramp up its capacity amid strong domestic demand following the Goods and Services Tax (GST) rate cut and robust exports.

The new manufacturing facility, with a proposed capacity addition of up to 1 million units, will be located at Khoraj Industrial Estate on the outskirts of Ahmedabad.

“Maruti Suzuki’s board had approved to acquire land for expansion of production capacity at Khoraj Industrial Estate from Gujarat Industrial Development Corporation,” India’s biggest carmaker said in a stock exchange filing.

The period within which the proposed capacity is to be added will be finalised and approved by the board while framing the phases of installation of the capacity.

Maruti Suzuki said its existing production capacity at Haryana’s Manesar and Gurugram, as well as its Hansalpur plant in Gujarat, is “fully utilised”.

The total existing capacity is around 24 lakh units per annum in Gurugram, Manesar, Kharkhoda and Hansalpur, with a capability to produce 26 lakh units per annum. This includes the units produced at erstwhile Suzuki Motor Gujarat Pvt Ltd.

The Japanese automaker will finance the land and development costs by a combination of internal accruals and external borrowings.

“The cost of land acquisition, development and preparatory activities approved by the board is Rs 4,960 crore,” it said.

India’s leading carmaker by volume, Maruti Suzuki, sells more cars than the next three carmakers — Mahindra & Mahindra (M&M), Tata Motors and Hyundai Motor India — combined. According to VAHAN data, Maruti Suzuki sold 17.86 lakh cars in the domestic market in the calendar year 2025. This is more than the combined retail sales of M&M (5,92,771), Tata Motors (5,67,607) and Hyundai (5,59,558). Maruti Suzuki’s domestic market share stood at 40%.

The Japanese carmaker also witnessed robust exports in 2025. It reported the highest-ever exports of 395,648 units – accounting for 17% of sales – last year. It ended 2025 with the highest-ever wholesales of 2,351,139 units.

Maruti Suzuki was India’s leading passenger vehicle exporter for the fifth consecutive calendar year as exports grew 21% year-on-year in 2025. The carmaker exported 18 models to over 100 countries. The year also marked the commencement of export of Suzuki’s first Battery Electric Vehicle (BEV), the e-VITARA. After the flag-off of the BEV by Prime Minister Narendra Modi at Maruti Suzuki’s Hansalpur facility in August 2025, more than 13,000 EVs have already been exported to 29 countries.