Maruti Suzuki India Ltd. has announced an ambitious capital expenditure (capex) plan of ₹77,500 crore, slated for the financial years 2027 through 2031. This significant investment underscores the automaker's commitment to strengthening its market position by expanding manufacturing capabilities and introducing new vehicle models.
Boosting Production Capacity
The company's capex strategy includes a substantial 40% increase in capital expenditure for FY27, with plans to invest ₹14,000 crore, up from ₹10,000 crore in FY26. This aggressive investment is crucial for Maruti Suzuki, which recently expanded its total manufacturing capacity to 2.9 million units per annum.
A key part of this expansion is the operationalization of the fourth plant (Plant D) at its Hansalpur facility in Gujarat, adding 250,000 units and boosting Hansalpur's total annual production capacity to 1 million units.
New Plant in Sanand, Gujarat
Further solidifying its manufacturing footprint, Maruti Suzuki has already acquired 1,750 acres of land for ₹4,940 crore for a second plant in Sanand, Gujarat. This upcoming facility, projected to cost ₹35,000 crore, will add another 1 million units to the company's annual production capacity, signaling a robust growth trajectory.
Focus on Small Car Segment
Hisashi Takeuchi, MD and CEO of Maruti Suzuki, highlighted the company's continued focus on the small car segment. Addressing shareholder queries at the company's 45th AGM, Takeuchi stated, "There is huge potential for small cars in future, and the company continues to remain focused in this segment through appropriate product intervention." The company has witnessed a 63% growth in small car volumes in the April-July period post GST 2.0, maintaining an impressive 83% market share in models like the Alto K10, S-Presso, Celerio, and Wagon R during the current fiscal year.