Ahmedabad: Maruti Suzuki on Monday announced that its board has cleared an investment of ₹4,960 crore for the purchase of land in Gujarat, as part of its strategy to expand vehicle manufacturing capacity, according to a regulatory filing.

The country’s largest automaker said the land will be acquired at the Khoraj Industrial Estate from the Gujarat Industrial Development Corporation and will be used to support a planned capacity addition of up to one million vehicles annually. The company added that the implementation timeline and overall capital outlay for the project will be determined later, as the expansion will be carried out in phases.

The decision comes at a time when Maruti Suzuki’s existing facilities are operating at full utilisation. The company said that “the total existing capacity 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 the erstwhile Suzuki Motor Gujarat Private Limited, which has been amalgamated with the company,” adding that this capacity is fully utilised.

The move underlines the company’s intention to secure additional manufacturing capacity in advance, amid strong demand and in a market where supply limitations can quickly affect market share.

Maruti Suzuki said the expansion is being driven by rising domestic and export demand. The investment for land acquisition, development and preparatory work will be funded through a mix of internal accruals and external borrowings.

Over the past few years, the company has built a strong manufacturing presence in Gujarat, using the state as a base for both domestic sales and exports. The new land acquisition will provide flexibility for future capacity expansion as existing plants continue to operate at full capacity. DeshGujarat