Maruti Suzuki to Invest ₹35,000 Crore in New Gujarat Plant with 1 Million Unit Annual Capacity

India's biggest automobile maker Maruti Suzuki will invest 350 billion rupees (Rs 35,000 crore/£3.3 billion/$3.9 billion) in a manufacturing facility it intends to establish in the western Indian state of Gujarat, the state government announced on Saturday, Reuters has reported. The plant will add production capacity of up to 1 million vehicles annually for the automaker as it expands manufacturing to meet rising demand in India, the world's third-largest car market, and for exports, Gujarat stated.

Production at the facility is expected to start in financial year 2029 and will add to the annual production capacity of 2.4 million vehicles for Maruti, which is majority-owned by Japan's Suzuki Motor and is India's top carmaker by sales.

The company has an order backlog of approximately one and a half months for its entry-level models, its marketing and sales head, Partho Banerjee, had said this month.

The company stated its sales to domestic dealers rose 37 per cent in December to a record 178,646 units. Maruti's board of directors this week approved an initial investment of 49.6 billion rupees (£420 million) to acquire land for the plant.

Earlier last week, Maruti Suzuki India Limited said it is working to acquire land from the Gujarat government for a new automobile production plant to be constructed in Sanand, Gujarat State, India.