Maruti Suzuki board approves ₹4,960-crore proposal to acquire land for expanding capacity in Gujarat

New Delhi, Jan 12 (PTI) Automobile market leader Maruti Suzuki India on Monday said its board has approved a deal. ₹4,960 crore bid to acquire land and expand production capacity in Gujarat.

The company’s board of directors, in its meeting held on Monday, approved the acquisition of land from the Gujarat Industrial Development Corporation for expansion of manufacturing capacity at Khoraj Industrial Area, and the “proposed capacity addition is up to 1 million (10 lakh) units,” Maruti Suzuki India said in a regulatory filing.

Regarding the overall investment, the company said that the investment will be finalized and approved by the board of directors while framing the capacity installation stages.

“The cost of land acquisition, development and preparation activities approved by the Board ₹4,960 crore,” he added.

Maruti Suzuki India said the mode of financing will be a combination of internal accruals and external borrowings.

The company’s total existing capacity is around 24 lakh units per annum in Gurugram, Manesar, Kharhoda (all in Haryana) and Hansalpur (Gujarat), with the capacity to produce 26 lakh units per annum, it added.

This includes units manufactured at the erstwhile Suzuki Motor Gujarat Pvt Ltd, which was merged with the company, according to the filing.

The company added that the existing capacity was fully used.

In 2024, Suzuki Motor Corporation Chairman Toshihiro Suzuki announced that the company’s Indian arm, Maruti Suzuki India (MSI), will invest. ₹35,000 crore will set up its second manufacturing plant in Gujarat with an installed production capacity of 10 lakh units per annum.

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