Maruti Suzuki India Limited (MSIL) has announced a significant step toward strengthening its manufacturing footprint with the approval of a major land acquisition by its Board of Directors. The decision, disclosed to stock exchanges on January 12, 2026, underscores the company’s long-term commitment to meeting rising domestic and international demand for passenger vehicles.
The Board has approved the acquisition of land at the Khoraj Industrial Estate in Gujarat from the Gujarat Industrial Development Corporation (GIDC). The proposed site will support the development of a new manufacturing facility with an annual production capacity of up to one million vehicles. For this purpose, the Board has sanctioned an investment of approximately ₹4,960 crore, which will cover land acquisition, development, and other preparatory activities.
Maruti Suzuki currently operates manufacturing facilities in Gurugram, Manesar, Kharkhoda, and Hansalpur, with a combined production capacity of around 24 lakh units per annum. With operational efficiencies, the company is capable of producing up to 26 lakh units annually. This figure includes capacity from the erstwhile Suzuki Motor Gujarat Private Limited, which has since been merged into Maruti Suzuki India Limited.
According to the company’s regulatory filing, the existing production capacity is now fully utilized. Continued growth in the Indian passenger vehicle market, along with expanding export opportunities, has necessitated the addition of new capacity to sustain momentum and support future growth plans. The new Gujarat facility is expected to play a crucial role in addressing this demand while enhancing supply chain efficiencies and regional manufacturing strength.
The timeline for the installation of the proposed capacity, as well as the total investment required beyond the initial approval, will be determined in a phased manner. These details will be finalized and approved by the Board as part of the project’s implementation strategy. Maruti Suzuki has indicated that the expansion will be financed through a prudent mix of internal accruals and external borrowings, ensuring financial flexibility while maintaining balance sheet strength.
This expansion represents a significant milestone in Maruti Suzuki’s long-term strategy as India’s largest passenger vehicle manufacturer. By investing in new manufacturing infrastructure, the company aims to reinforce its leadership position, improve responsiveness to market demand, and support the government’s broader “Make in India” initiative.
The development at Khoraj Industrial Estate is also expected to contribute to regional economic growth through job creation and increased industrial activity. As Maruti Suzuki continues to expand its production capabilities, the company remains focused on delivering high-quality, reliable, and fuel-efficient vehicles to customers in India and across global markets. With this strategic move, Maruti Suzuki reaffirms its confidence in the sustained growth of the automotive sector and its readiness to scale operations to meet the evolving needs of consumers.
