Maruti Suzuki Plans Major Expansion With New Gujarat Manufacturing Plant - Details Inside

Maruti Suzuki India is preparing for a major expansion of its manufacturing operations with a new automobile plant planned in Sanand, Gujarat. Maruti Suzuki India Limited has acquired around seven million square metres of land in Sanand, Gujarat, for its upcoming manufacturing facility.

The land acquisition was approved earlier, with a basic agreement reached with the Government of Gujarat in January 2024 and the total investment for the land purchase, development with preparatory work stands at Rs 4,960 crore.

Once completed, the new Sanand plant will have an annual production capacity of up to one million vehicles. This will make it Maruti Suzuki’s second manufacturing facility in Gujarat, following the Hansalpur plant that started operations in 2017.

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Boosting Maruti Suzuki’s Overall Capacity

With the addition of the Sanand facility, Maruti Suzuki’s total installed

manufacturing capacity in India will increase to around 3.6 million vehicles per year and currently, much of the company’s production capacity is already being used, which is why expansion has now become necessary.

Maruti Suzuki now operates four manufacturing plants across India, that are Gurugram and Manesar in Haryana, Hansalpur in Gujarat, and Kharkhoda in Haryana, which started operations in 2025. The new Gujarat plant will further strengthen this network and allow the company to meet future demand more efficiently.

Why Gujarat?

The choice of Gujarat, and Sanand in particular, is a strategic one, as according to Suzuki Motor Corporation, Gujarat offers a well-developed ecosystem for automobile manufacturing. Sanand also benefits from excellent road and rail connectivity, along with its proximity to ports.

Investment and Funding

The company’s board has approved the Rs 4,960 crore investment, which will cover land acquisition, infrastructure development, and preparatory activities. This investment will be funded through a mix of internal accruals and external borrowings. Maruti Suzuki has stated that the exact timeline and phases of capacity addition will be decided later by the board.