Maruti Suzuki to make all new production lines flexible, says RC Bhargava

Maruti Suzuki will make all its new production lines flexible enough to switch between platforms and models in response to changes in demand, chairman RC Bhargava said in the company's annual report for FY26.

The move is aimed at addressing capacity mismatches that emerged after the company adjusted production over the past several years to account for falling small-car sales and the rapid growth of SUVs.

The subsequent recovery in small-car demand left Maruti Suzuki without adequate capacity for some models. The country’s largest carmaker ended March 2026 with 1.9 lakh pending bookings for vehicles it was unable to produce in sufficient numbers.

“This was the consequence of adjustments made over the past several years to cater to the fall in small car sales and the growth of the SUV market,” Bhargava said in his address to shareholders.

“We are remedying this situation by making all our new production lines flexible enough to permit your company to change platforms and models as may be required,” he added.

Bhargava said the changes had already started showing results. Maruti Suzuki’s small-car sales grew 35 percent in the first quarter of FY2027 as the company increased production of vehicles facing stronger demand.

The carmaker’s overall sales increased 38 percent during the quarter, compared with 28 percent growth for the industry. Small-car sales had grown 17 percent in the second half of FY2026 following the implementation of revised GST rates in September 2025.

Maruti Suzuki is implementing the flexible manufacturing strategy while expanding its production footprint. Its installed capacity is projected to reach 2.9 million vehicles by the end of FY2027 and 3.65 million units by the end of FY2031.

Two production lines have been commissioned at the company’s Kharkhoda plant in Haryana, while work is progressing on the third.

At Hansalpur in Gujarat, a fourth line with annual capacity of 250,000 vehicles has been commissioned. This has taken the plant’s capacity to one million units, making it Suzuki Motor Corporation’s largest manufacturing facility globally.

Maruti Suzuki has also begun work at a new site in Sanand, Gujarat, where it plans to establish an annual capacity of one million vehicles. The proposed investment at the site is Rs 35,000 crore.

The flexible lines, combined with the additional capacity at Kharkhoda, Hansalpur and Sanand, are intended to give Maruti Suzuki greater room to adjust its production mix as demand shifts between small cars and SUVs.