Maruti Suzuki’s Gujarat Gambit: A ₹14,000 Crore Bet on the Future

Maruti Suzuki India Ltd (MSIL) has announced plans to invest ₹14,000 crore in FY27 to expand its manufacturing capacity, even as it reported a decline in fourth-quarter profits.

The investment will be directed toward increasing annual production capacity by 5 lakh units across its facilities in Kharkhoda, Haryana, and Hansalpur, Gujarat, taking the company’s total installed capacity beyond 24 lakh units per annum.

This expansion is part of MSIL’s long-term growth strategy, which also includes the development of a new manufacturing plant in Gujarat. In January, the company approved the acquisition of land at Khoraj Industrial Estate in Sanand, with an initial outlay of ₹4,950 crore for land and site development. Subsequently, in March, it cleared an additional ₹10,189 crore investment for phase-I development, which will add a production capacity of 2.5 lakh units annually along with shared infrastructure.

On the financial side, the company reported a 6.45% year-on-year decline in consolidated net profit to ₹3,659 crore for the quarter ended March 31, compared to ₹3,911.1 crore in the same period last year. The decline was attributed to mark-to-market impacts, despite the company achieving record vehicle sales during the quarter.

News by Rahul Yelligetti.