Maruti Suzuki plans expansion, to invest ₹35,000 cr in new Gujarat plant

Indian automaker Maruti Suzuki will invest ₹35,000 crore($3.9 billion) ‍in a plant ​it plans to set up in the western Indian state of Gujarat, the state's government said on Saturday.

The plant will add production capacity of up to 1 million vehicles a year for ​the automaker as it expands manufacturing to meet rising demand in India, the world's third-largest car market, and for exports, Gujarat said in a statement.

Production at the plant is expected to begin in financial year 2029 and will add to the annual production capacity of 2.4 million vehicles for Maruti, which is majority-owned by Japan's Suzuki Motor and is India's top carmaker by sales.

 

The company has an order backlog of about ‌one and a half months for ​its entry-level models, its marketing and sales head, Partho Banerjee, said this month. The company said its sales to domestic dealers rose ‍37 per cent in December to a record 178,646 units.

Maruti's board of directors this week approved an ‍initial investment ‌of ₹4,960 crore to acquire ‍land for the plant.