Maruti Suzuki to Invest $3.9 Billion in New Gujarat Manufacturing Plant
Maruti Suzuki India Ltd will invest 350 billion rupees (about $3.9 billion) to set up a new manufacturing plant in Gujarat, the state government announced on Saturday. The facility will add production capacity of up to 1 million vehicles annually, supporting the company’s plans to expand output to meet rising domestic demand and boost exports from India, the world’s third-largest car market.
Production at the new plant is expected to begin in the financial year 2029. Once operational, it will add to Maruti Suzuki’s existing annual production capacity of 2.4 million vehicles. The company, which is majority-owned by Japan’s Suzuki Motor Corp, currently leads the Indian passenger vehicle market by sales and continues to scale up manufacturing to maintain its dominant position.
Demand for Maruti vehicles remains strong, with the company reporting an order backlog of around one and a half months for its entry-level models. Sales to domestic dealers jumped 37% in December to a record 178,646 units. Earlier this week, Maruti’s board approved an initial investment of 49.6 billion rupees to acquire land for the upcoming Gujarat plant.
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