Ahmedabad: Maruti Suzuki India Limited has approved the first phase of capacity expansion at its upcoming manufacturing facility in Gujarat, marking a major step in the company’s long-term growth strategy.

The decision was taken at the board meeting held on Tuesday, following the company’s earlier announcement on January 12, 2026, regarding the acquisition of land at Khoraj Industrial Estate from the Gujarat Industrial Development Corporation (GIDC).

As part of the first phase, the board has approved the addition of production capacity of 2.5 lakh vehicles per year at the Khoraj site, with a total investment of ₹10,189 crore. The project is expected to be completed by 2029, subject to market conditions, the company said in its regulatory filing to the stock exchanges.

The investment includes the cost of setting up the car manufacturing plant with an annual capacity of 2.5 lakh units, along with the development of common infrastructure and facilities that will support future expansion at the location. The project will be funded through internal accruals.

Maruti Suzuki currently has an installed production capacity of around 24 lakh vehicles per annum across its facilities in Gurugram, Manesar, Kharkhoda and Hansalpur, with the capability to produce up to 26 lakh units annually. This includes the capacity of the erstwhile Suzuki Motor Gujarat Private Limited, which has been merged with the company. The existing capacity is fully utilised, prompting the need for further expansion.

The company said the new capacity addition is aimed at meeting growing demand in the domestic market as well as increasing export opportunities. DeshGujarat