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Maruti Suzuki to Expand Manufacturing in India with New Gujarat Plant
Maruti Suzuki India plans to add a new manufacturing facility in Sanand, Gujarat, with an annual capacity of one million vehicles, following land acquisition approved in January 2024.
Keshav Rajput
Updated Jan 13, 2026, 05:11 PM IST
Maruti Suzuki to Set Up One Million-Unit Manufacturing Plant in Gujarat
Maruti Suzuki India Limited has acquired around seven million square metres of land in Sanand, Gujarat, for a new automobile manufacturing plant. The land was acquired at a cost of Rs 4,960 crores. A basic agreement with the Government of Gujarat was reached in January 2024.
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Plant capacity and expansion plans
The proposed facility will have an annual production capacity of up to one million vehicles. This will be the company’s second manufacturing plant in Gujarat, after the Hansalpur facility that began operations in 2017. Once operational, the Sanand plant will raise Maruti Suzuki’s total installed production capacity in India to about 3.6 million units per year.
Existing manufacturing footprint
Maruti Suzuki currently operates four production facilities across India - Gurugram and Manesar in Haryana, Hansalpur in Gujarat and Kharkhoda in Haryana. The Kharkhoda plant commenced operations in 2025. The company’s existing capacity is largely utilised, prompting the need for further expansion.
Rationale for Gujarat location
According to Suzuki Motor Corporation, Gujarat offers established supplier networks and transport infrastructure. Sanand has road and rail connectivity and is located near ports, supporting both domestic distribution and vehicle exports.
Investment and financing
The board has approved spending of Rs 4,960 crore for land acquisition, development and preparatory activities. The investment will be funded through a mix of internal accruals and external borrowings. The timeline and phasing of capacity addition will be finalised by the board at a later stage.
Market context
India remains Suzuki’s largest production base globally. The planned capacity addition is linked to expected growth in domestic demand and exports from India over the coming years.
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