Maruti Suzuki India Limited announced that its Board has approved the first phase of capacity addition at the Khoraj Industrial Estate. This strategic investment totals INR 10,189 Crores and will add 2,50,000 vehicles per annum. The existing capacity is fully utilized, making this expansion necessary to meet growing market demand and exports. The new production line is expected to be operational by 2029.
Major Capacity Expansion Approved
Maruti Suzuki India Limited (MSIL) has announced a significant strategic step to enhance its manufacturing capabilities. Following the prior approval to acquire land at the Khoraj Industrial Estate from the Gujarat Industrial Development Corporation, the Board has now sanctioned the first phase of capacity addition at this new site.
Key Details of the Capacity Addition
The information provided highlights the necessity and scope of this expansion:
- Existing Capacity Status: The current total capacity across Gurugram, Manesar, Kharkhoda, and Hansalpur stands at around 24 Lac units per annum, with the capability to reach 26 Lac units. Crucially, the existing capacity is reported as fully utilized.
- Proposed Addition: The approved first phase involves adding a capacity of 2,50,000 vehicles per annum at the Khoraj Industrial Estate.
- Timeline: This new capacity is anticipated to be added by the year 2029, contingent upon prevailing market conditions.
Financial Commitment and Funding
The investment required for this initial phase is substantial. The total project outlay is pegged at INR 10,189 Crores. This amount covers the construction of the first phase car manufacturing plant (250,000 units capacity) along with necessary common infrastructure intended to support future plant expansions.
The funding mechanism for this large capital expenditure will rely solely on Internal Accruals.
Rationale for Expansion
The fundamental driver behind this substantial investment is the sustained growth in market demand, including a strong focus on exports. This expansion ensures that MSIL can effectively cater to increasing customer requirements across its sales channels.
The Board meeting where this decision was finalized commenced at 12:30 p.m. and concluded at 2:15 p.m. on 24th March 2026.
Source: BSE
