Maruti Suzuki is set to supercharge its Gujarat operations with a landmark ₹5,000 crore land purchase approval. This bold step by India’s largest carmaker will dramatically scale up manufacturing capabilities, fueling ambitions for higher volumes and diversified portfolios.
Details emerged from the company’s latest board resolution, approving the acquisition of prime industrial land in Gujarat’s Sanand region. The move builds on Maruti’s existing presence, where it already rolls out popular models like the Brezza and Ertiga. The expanded footprint is projected to house advanced assembly lines, stamping units, and possibly battery plants for upcoming EVs.
This comes at a pivotal time for the auto industry, grappling with chip shortages and shifting consumer preferences. By investing heavily in Gujarat, Maruti leverages the state’s seamless logistics via ports like Kandla and a proactive government offering incentives. Local leaders celebrated the news, forecasting a ripple effect on ancillary industries and MSME growth.
Financially robust with record profits last fiscal, Maruti is well-positioned for this capex. The deal involves negotiations with state authorities and landowners, ensuring compliance with environmental norms. Once operational, it could propel annual capacity beyond 4 million units nationwide.
Competitors are watching closely, as this reinforces Maruti’s dominance with over 45% market share. For investors, it’s a bullish signal amid economic recovery. Looking ahead, the expansion promises cheaper vehicles for buyers and stronger export potential to Southeast Asia and Africa, cementing Maruti’s role in India’s auto renaissance.