Maruti Suzuki to Add Up to 1 Million Units in Annual Capacity After $550 Million Land Buy
India’s largest carmaker Maruti Suzuki (MRTI.NS) on Monday announced plans to expand its manufacturing footprint by adding up to 1 million units of annual production capacity, following the purchase of land worth around $550 million. The move is aimed at meeting rising domestic automobile demand as the company continues to strengthen its production base in India.
The expansion comes at a time when the automaker is seeing strong momentum in entry-level models, with an order backlog of about one-and-a-half months, according to its marketing and sales head Partho Banerjee. The company also reported that sales to domestic dealers rose 37% in December to an all-time high of 178,646 units, reflecting sustained customer demand across segments.
Maruti Suzuki’s planned capacity boost aligns with parent firm Suzuki Motor’s (7269.T) wider India strategy, after it announced an $8 billion investment in the country over the next five to six years. Suzuki has also begun commercial production of the mid-sized e Vitara SUV at its Gujarat facility and is positioning India as its global production hub for electric vehicles, while continuing exports of 17 models to around 100 countries including Japan.
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