Maruti Suzuki board approves land acquisition for ₹35,000 crore second plant in Gujarat Business News & Hub

Board of Maruti Suzuki India Ltd. (MSIL) on Monday (January 12, 2026) granted approval to acquire land for expansion of production capacity at Khoraj Industrial Estate in Sanand from Gujarat Industrial Development Corporation.

This will be the company’s second plant in Gujarat, the first being at Hansalpur. 

Currently the total existing capacity of the company is around 24 lakh units per annum in Gurugram, Manesar, Kharkhoda and Hansalpur, with a capability to produce 26 lakh units per annum. 

This includes the units produced at erstwhile Suzuki Motor Guiarat Private Ltd. which has  been amalgamated with the company. Since the existing capacity is fully utilised, approval has come for the new plant. 

The proposed capacity addition is upto 10 lakh units per annum. It will be operational in phases, the company said. 

The board has approved ₹4,960 crore towards cost of land acquisition, development and preparatory activities, the company said in a regulatory filing.

It will be financed through a combination of internal accruals and external borrowings. This factory will cater to both domestic and exports markets.

In January 2024, President of Suzuki Motor Corporation (SMC), Toshihiro Suzuki had announced that MSIL would make more investments in Gujarat with a new geeenfield plant. 

This new plant in Gujarat is aimed to start operation in FY29. This unit will have total investment of ₹35,000 crore (excluding land acquisition cost). 

Combined with the new plant in Gujarat, the total annual production capacity in the State of Gujarat will be 2 million.

Maruti Suzuki plans to secure a production capacity of approximately 4 million units in India by FY2030-31 to prepare for future expansion of automobile market in India.