In a major move to ramp up its manufacturing prowess, Maruti Suzuki India Limited has greenlit a massive land acquisition deal worth approximately ₹5,000 crore in Gujarat. The decision, announced recently, aims to significantly expand the company’s production capacity at its key facility in the state, positioning it to meet surging domestic and export demands.
The board of directors gave the nod to this strategic investment during a recent meeting, marking one of the largest single expansions in the Indian auto sector this year. The land deal encompasses thousands of acres in the Hansalpur area near Ahmedabad, where Maruti already operates a sprawling manufacturing unit. This expansion is expected to add millions of units to the annual output, focusing on both internal combustion engine vehicles and future electric models.
Gujarat has long been a hub for automotive manufacturing, attracting giants like Tata Motors and Ford in the past. Maruti Suzuki’s commitment underscores the state’s investor-friendly policies, robust infrastructure, and skilled workforce. Industry experts hail this as a game-changer, predicting it will create thousands of direct and indirect jobs, bolstering the local economy.
The investment aligns with India’s push towards self-reliance in auto production under the Atmanirbhar Bharat initiative. With global supply chains disrupted and EV adoption accelerating, Maruti is doubling down on localization to cut costs and reduce import dependencies. Sources indicate construction could commence as early as next quarter, with full operations targeted within 2-3 years.
Market reaction has been positive, with Maruti shares ticking up in early trade. Analysts project this expansion will help the company capture a larger slice of the SUV and compact car segments, where competition from Hyundai and Kia is intensifying. As India aims to become the third-largest auto market globally, such investments signal sustained growth momentum.