Maruti Suzuki Expands Haryana Footprint with Third Plant, Boosting Capacity to 750,000 Units
- 27-Mar-2025 12:45 AM
- Journalist: Shiba Teramoto
Maruti Suzuki, India's leading car manufacturer, has announced the approval of its third manufacturing plant at Kharkhoda, Haryana, marking a significant expansion of its production capabilities. The board's decision, revealed in a regulatory filing, underscores the company's commitment to meeting the escalating demand in the Indian automotive market and bolstering its export operations.
The new facility, slated to commence operations by 2029, will add an additional 250,000 units to Maruti Suzuki's annual production capacity. This expansion will bring the total capacity at the Kharkhoda site to a substantial 750,000 vehicles per year. The company has earmarked an investment of Rs 7,410 crore (approximately $88.92 million) for this project, funded through internal accruals.
The Kharkhoda site already houses two plants: one operational since February 2025, producing 250,000 units annually, and another under construction with similar capacity. The addition of the third plant will effectively triple the site's output, solidifying Maruti Suzuki's presence in the region.
This strategic move comes on the heels of Maruti Suzuki achieving a historic milestone in 2024, producing over 2 million vehicles in a calendar year for the first time. This achievement not only highlights the company's robust manufacturing capabilities but also positions it as a leader within Suzuki Motor Corporation's global network. Notably, approximately 60% of these vehicles were produced in Haryana, with the remaining 40% coming from its Gujarat facility.
The company's focus on expanding its Haryana operations is driven by several factors, including the region's established industrial ecosystem, skilled workforce, and logistical advantages. Moreover, Maruti Suzuki's strong export performance, accounting for approximately 40% of India's car exports, further necessitates increased production capacity.
In addition to the Kharkhoda expansion, Maruti Suzuki is also planning to establish a new greenfield facility with an annual production capacity of 1 million units, indicating its long-term growth strategy. The company is currently in the process of selecting an appropriate location for this ambitious project.
Despite the positive news regarding the plant expansion, Maruti Suzuki's stock experienced a slight dip, trading down by 0.75% on the NSE. This decline followed the company's receipt of a draft Assessment Order for the FY 2021-22, proposing certain additions/disallowances amounting to Rs 2,966 crore with respect to returned income.
However, the company's long-term outlook remains positive, driven by its strong market position, expanding production capacity, and strategic investments in new facilities. The Kharkhoda expansion is expected to significantly enhance Maruti Suzuki's ability to cater to the growing demand for its vehicles, both domestically and internationally, reinforcing its dominance in the Indian automotive market.