Maruti Suzuki India.
Credit: Dh Photos
New Delhi: Car market leader Maruti Suzuki India on Monday said its board has approved a Rs 4,960-crore proposal to acquire land and expand its manufacturing capacity in Gujarat.
The company's board, at its meeting held on Monday, granted approval to acquire land for the expansion of production capacity at Khoraj Industrial Estate from Gujarat Industrial Development Corporation, and "the proposed capacity addition is up to 1 million (10 lakh) units", Maruti Suzuki India said in a regulatory filing.
On the overall investment, the company said it would be finalised and approved by the board while framing the phases of installation of capacity.
"The cost of land acquisition, development and preparatory activities approved by the board is Rs 4,960 crore," it added.
The mode of financing would be a combination of internal accruals and external borrowings, Maruti Suzuki India said.
The total existing capacity of the company is around 24 lakh units per annum in Gurugram, Manesar, Kharkhoda (all in Haryana), and Hansalpur (Gujarat), with a capability to produce 26 lakh units per annum, it added.
This includes the units produced at erstwhile Suzuki Motor Gujarat Pvt Ltd, which has been amalgamated with the company, the filing said.
The existing capacity is fully utilised, the company added.
In 2024, Suzuki Motor Corporation President Toshihiro Suzuki announced that the company's Indian arm, Maruti Suzuki India (MSI), would invest Rs 35,000 crore to set up its second manufacturing facility in Gujarat with an installed production capacity of 10 lakh units per annum.