Maruti Suzuki board clears Rs 4,960 crore investment for land acquisition

Maruti Suzuki India on Monday said its board has approved the acquisition of land at the Khoraj Industrial Estate from the Gujarat Industrial Development Corporation to support the expansion of its production capacity.

The country’s largest carmaker currently has an installed capacity of about 24 lakh units per annum across its plants in Gurugram, Manesar, Kharkhoda and Hansalpur, with an operational capability of up to 26 lakh units annually. This includes production from the erstwhile Suzuki Motor Gujarat Private Limited, which has since been amalgamated with Maruti Suzuki India.

The proposed expansion will add capacity of up to one million units. The board has approved an investment of Rs 4,960 crore towards land acquisition, development and preparatory activities.

The company said the expansion is aimed at meeting anticipated growth in market demand, including exports.

The announcement follows Maruti Suzuki’s December statement outlining its plans to localise battery manufacturing and other critical components over the next few years, as part of efforts to strengthen India’s electric vehicle ecosystem.

Maruti Suzuki, which is set to launch its first electric vehicle--the e VITARA in the domestic market later this year, has been ramping up investments in research, development and manufacturing to scale its business. The company’s market capitalisation currently stands at Rs 5.15 lakh crore, the highest among automakers in India.

Last year, Suzuki Motor Corporation announced plans to invest $8 billion in India over the next five to six years. Through its majority stake in Maruti Suzuki India, Suzuki already manufactures 17 models in the country for export to around 100 markets, including Japan, and has outlined plans to make India a global production hub for its electric vehicles.

At the time, Maruti Suzuki chairman RC Bhargava said the company expects to export between 50,000 and 100,000 electric vehicles annually.