Maruti Suzuki India Limited (MSIL) announced that its Board of Directors has approved the acquisition of land for expanding its production capacity. The land will be acquired from Gujarat Industrial Development Corporation (GIDC) for the Khoraj Industrial Estate.

The company's current total production capacity across its facilities in Gurugram, Manesar, Kharkhoda, and Hansalpur stands at approximately 2.4 million units per annum, with a capability to produce 2.6 million units per annum. This includes production from the erstwhile Suzuki Motor Gujarat Private Limited, which has now been amalgamated with MSIL. The existing capacity is reported to be fully utilized.

Maruti Suzuki plans to add up to 1 million units to its production capacity through this expansion. The specific timeline for the installation phases and the exact investment required for the capacity addition are yet to be finalized and will be subject to further Board approval. However, the Board has approved an initial cost of ₹4,960 crore for the land acquisition, development, and preparatory activities.

The expansion is driven by the growing market demand for vehicles, including exports. The financing for this expansion will be a combination of internal accruals and external borrowings. The company will provide further updates on the phasing and investment as they are finalized.