New Delhi, 12 January (H.S.): Maruti Suzuki India Limited (MSIL), India's largest car manufacturer, secured board approval on Monday for a ₹4,960 crore proposal to acquire land and expand manufacturing capacity in Gujarat. The decision, announced to stock exchanges, targets the Khokhra Industrial Estate through the Gujarat Industrial Development Corporation, aiming to boost annual production by up to 1 million units.

Project Funding and Timeline

The approved expenditure covers land acquisition, development, and preparatory activities, with total investment details to be finalized during phased capacity establishment and subsequent board ratification. Financing will combine internal accruals and external borrowings, ensuring strategic resource allocation. This expansion builds on the company's full utilization of existing facilities.

Current Capacity Overview

MSIL's installed production capacity spans Gurugram, Manesar, Kharkhoda (all in Haryana), and Hansalpur (Gujarat), totaling approximately 2.4 million units annually, with an overall capacity of 2.6 million units per year. This includes units from the now-merged Suzuki Motor Gujarat Private Limited, operating at maximum efficiency to meet surging domestic and export demand.

The move aligns with a 2024 announcement by Suzuki Motor Corporation Chairman Toshihiro Suzuki, committing ₹35,000 crore for MSIL's second Gujarat manufacturing unit with a 1 million-unit annual capacity. This investment underscores Maruti Suzuki's aggressive growth strategy amid India's booming automotive sector.

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Hindusthan Samachar / Jun Sarkar