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Maruti Suzuki Second Car Plant Gujarat Investment: Overview
- Maruti Suzuki announces ₹4,960 crore investment for a second car manufacturing plant in Gujarat.
- The new facility will add 10 lakh units of annual production capacity.
- The plant is to be located in Becharaji, near an existing facility; construction is to begin soon.
- Total Gujarat capacity to reach over 20 lakh units annually upon completion.
- Investment supports long-term growth, new model launches, and export expansion.
Maruti Suzuki Commits ₹4,960 Crore for Second Gujarat Plant: Major Capacity Expansion Planned
Maruti Suzuki India Limited has unveiled a significant investment of ₹4,960 crore to establish its second car manufacturing plant in Gujarat, further strengthening its position as the country’s largest carmaker. The announcement, made on January 10, 2026, includes plans to add 10 lakh units of annual production capacity at the new facility, which will be located in Becharaji—adjacent to the company’s existing plant in the same region.
This expansion comes at a time when Maruti Suzuki is aggressively pursuing market growth, launching new models across segments, and increasing its export footprint. The new plant will bring the company’s total manufacturing capacity in Gujarat to over 20 lakh units per year once fully operational, reinforcing Gujarat’s role as a key automotive hub for Maruti Suzuki.
The investment underscores the company’s confidence in India’s long-term automotive demand and its strategy to maintain leadership in both domestic sales and international shipments. Maruti Suzuki already exports to over 100 countries, and the additional capacity will support future export growth, particularly for models like the Grand Vitara, Brezza, Fronx, and upcoming electric vehicles.
Key Details of the Investment and New Plant
| Aspect | Details |
|---|---|
| Investment Amount | ₹4,960 crore |
| New Capacity Addition | 10 lakh units per year |
| Location | Becharaji, Gujarat (near existing plant) |
| Total Gujarat Capacity (post-expansion) | Over 20 lakh units per year |
| Timeline | Construction to begin soon; phased commissioning |
| Strategic Purpose | Support new launches, domestic growth, exports |
The Becharaji region already hosts Maruti Suzuki’s first Gujarat plant (operational since 2017) with a current capacity of around 7.5 lakh units annually. The second facility will allow the company to scale production efficiently while maintaining high-quality standards.
Why This Expansion Is Significant
The ₹4,960 crore commitment reflects Maruti Suzuki’s long-term vision:
- Domestic demand growth: India remains one of the fastest-growing car markets.
- New model pipeline: Upcoming launches across petrol, hybrid, and electric segments.
- Export ambition: Targeting higher volumes in over 100 countries.
- Localization & cost efficiency: Strengthening Gujarat as a manufacturing powerhouse.
The investment also supports job creation, supplier ecosystem development, and skill enhancement in the region.
Maruti Suzuki’s Gujarat Journey So Far
- The first plant (Becharaji) was inaugurated in 2017 with an initial capacity of 3 lakh units.
- Expanded over time to the current 7.5 lakh units.
- Produces key models: Brezza, Ertiga, XL6, Grand Vitara, and others.
- Gujarat plants contribute significantly to Maruti’s total output (Gujarat + Haryana + Haryana 2).
The second plant will enable Maruti to meet rising demand without compromising on quality or delivery timelines.
Strategic Context: Preparing for India’s Automotive Future
Maruti Suzuki’s Gujarat expansion aligns with:
- India’s growing middle-class demand for personal mobility.
- Shift toward hybrids and EVs (Maruti planning multiple electric models).
- The government’s “Make in India” and export promotion policies.
- Need for supply chain resilience and localization.
With capacity set to exceed 20 lakh units in Gujarat alone, Maruti Suzuki reinforces its ability to serve both domestic and global customers efficiently.
The Bigger Picture: Maruti’s Capacity Leadership
As India’s automotive market evolves—with rising demand for SUVs, hybrids, and EVs—Maruti Suzuki’s proactive capacity addition ensures it remains well-positioned to lead. The ₹4,960 crore investment is a clear signal of confidence in long-term growth and a commitment to maintaining its dominant market share.
With the new plant, Maruti Suzuki is not just expanding capacity—it’s preparing to meet India’s mobility needs for the next decade and beyond.
Source: projectstoday.com
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