Maruti Suzuki India Limited on Tuesday informed the National Stock Exchange and BSE that its board has approved the addition of the first phase of manufacturing capacity at Khoraj Industrial Estate, Gujarat. The decision was taken at a board meeting held on 24 March 2026, which commenced at 12:30 p.m. and concluded at 2:15 p.m. The formal disclosure was filed under SEBI Listing Regulations and signed by Sanjeev Grover, Executive Officer and Company Secretary of the company.
The proposed capacity addition stands at 2,50,000 vehicles per annum. The total investment earmarked for this first phase is ₹10,189 crores, which covers the construction of a full car manufacturing plant with an annual production capacity of 2,50,000 units, along with common infrastructure and facilities that are intended to support future plants at the same site. The company has stated that the expansion will be funded entirely through internal accruals, with no debt financing involved.
The first phase of capacity is expected to be operational by 2029, subject to prevailing market conditions at the time. The company cited growth in domestic market demand as well as exports as the primary rationale behind the expansion decision, signalling its intent to strengthen its position both within India and in international markets.
Maruti Suzuki's existing manufacturing capacity stands at approximately 24 lakh units per annum across its facilities in Gurugram, Manesar, Kharkhoda, and Hansalpur, with a peak production capability of 26 lakh units per annum. This figure includes units previously produced at erstwhile Suzuki Motor Gujarat Private Limited, which has since been amalgamated with the company. The company stated in its filing that existing capacity is fully utilised, underscoring the operational need for the proposed addition.
The Khoraj Industrial Estate is located in Gujarat and falls within a zone developed by the Gujarat Industrial Development Corporation (GIDC), a state government body that acquires and develops land for industrial purposes. Setting up a plant in this corridor aligns with the broader trend of automotive manufacturers expanding their footprint in western India, a region that has seen considerable industrial investment in recent years.
This announcement follows a letter dated 12 January 2026, in which Maruti Suzuki had informed the stock exchanges that its board had granted approval to acquire land at Khoraj Industrial Estate from the GIDC. Tuesday's disclosure represents the next step in that process, with the board now formally approving the first phase of capacity addition at the acquired site. The progression from land acquisition to capacity approval within approximately ten weeks suggests the company is moving with a degree of urgency on the project.
Maruti Suzuki is India's largest passenger vehicle manufacturer by market share and has held that position for several decades. The company sells vehicles under both the Maruti Suzuki and Suzuki brands and has a wide distribution network spanning urban and rural markets. Its parent company, Suzuki Motor Corporation of Japan, holds a majority stake in the Indian listed entity. As demand for passenger vehicles in India continues to rise — driven by factors such as rising incomes, urbanisation, and an expanding middle class — capacity constraints have increasingly become a point of focus for the company and its investors.
The addition of 2,50,000 units per annum in the first phase, with infrastructure laid for future phases, indicates that Khoraj could eventually become a significant manufacturing hub for the automaker. However, the company has not yet disclosed specifics regarding the scale or timeline of any subsequent phases at the site.