Maruti Suzuki board approves ₹4,960-crore proposal to acquire land for expanding capacity in Gujarat

Core Viewpoint - Maruti Suzuki India has approved a ₹4,960 crore proposal to acquire land and expand its manufacturing capacity in Gujarat, aiming to add up to 1 million units of production capacity [1][2][3]. Group 1: Expansion Details - The board approved the acquisition of land at Khoraj Industrial Estate from Gujarat Industrial Development Corporation for capacity expansion [2]. - The proposed capacity addition is up to 1 million (10 lakh) units, with the final investment details to be approved by the board during the capacity installation phases [2][3]. Group 2: Financial Aspects - The total cost for land acquisition, development, and preparatory activities is ₹4,960 crore, which will be financed through a combination of internal accruals and external borrowings [3]. - The existing manufacturing capacity of the company is approximately 2.4 million units per annum, with a capability to produce up to 2.6 million units per annum [3][4]. Group 3: Current Capacity Utilization - The existing capacity is fully utilized, indicating a strong demand for production [4]. - The current capacity includes units produced at the former Suzuki Motor Gujarat Pvt Ltd, which has been amalgamated with Maruti Suzuki India [4]. Group 4: Future Investments - In 2024, Suzuki Motor Corporation announced plans for Maruti Suzuki India to invest ₹35,000 crore to establish a second manufacturing facility in Gujarat, with an installed production capacity of 1 million units per annum [5].