Maruti Suzuki India Limited has informed the Exchange about Capacity addition
MARUTI · price
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Maruti Suzuki's Board has approved adding a first phase capacity of 2,50,000 vehicles per annum at a new site in Khoraj Industrial Estate, Gujarat. The total existing capacity across Gurugram, Manesar, Kharkhoda, and Hansalpur stands at around 24 lakh units per annum, which is already fully utilized. The new capacity is expected to be operational by 2029, depending on market conditions. The investment for this phase is estimated at ₹10,189 Crores, covering the car manufacturing plant and common infrastructure for future expansions. The entire investment will be funded through internal accruals with no debt or equity dilution. The rationale cited is to meet growing domestic and export demand.
Positive for long-term growth as the company is expanding capacity to capture rising demand, but the 2029 timeline means the benefits are several years away. Funding entirely through internal accruals protects shareholders from dilution, though the large capex could pressure near-term free cash flows and return ratios.