Maruti Suzuki to Invest ₹7,410 Crore+ for New Manufacturing Plant in Haryana

Automobile giant Maruti Suzuki India Limited has announced an investment of ₹7,410 crore (approximately $864 million) to establish its third manufacturing plant in Kharkhoda, Haryana. The company made this announcement in a regulatory filing on Wednesday, underscoring its commitment to expanding production to meet growing market demand.

Boosting Annual Production to 750,000 Units

Maruti Suzuki confirmed that the new plant will significantly enhance its manufacturing capacity. By 2029, the total production capacity at the Kharkhoda facility is projected to reach 750,000 units annually. The investment will enable the automaker to meet increasing demand, both domestically and for export markets.

Existing Manufacturing Facilities in Haryana

Maruti Suzuki currently operates two plants in Kharkhoda. The first plant, which commenced operations in February 2024, has an annual production capacity of 250,000 vehicles. The second plant, which is still under construction, will also have a capacity of 250,000 units per year. The newly announced third plant will match this production output, further strengthening the company’s presence in the region.

Strategic Growth and Market Demand

The company emphasized that the decision to establish a third plant aligns with its long-term growth strategy. With a steady increase in demand for Maruti Suzuki vehicles in India and overseas, the company aims to ensure seamless production and timely delivery. Maruti Suzuki holds a dominant position in car exports from India, accounting for nearly 40% of total vehicle exports, as reported in December 2024.

Funding and Financial Strategy

Maruti Suzuki stated that the new plant will be financed through internal accruals, demonstrating its financial strength and ability to reinvest in infrastructure development. The automaker remains committed to enhancing production efficiency and maintaining its leadership position in the Indian automotive industry.

Maruti Suzuki’s Existing Manufacturing Network

The company currently operates three major manufacturing facilities: two in Haryana and one in Gujarat. These plants collectively produce millions of vehicles each year, catering to both domestic and international markets. The addition of a third facility in Kharkhoda will further cement Maruti Suzuki’s status as India’s largest automobile manufacturer.

Stock Market Reaction and Financial Implications

Following the announcement, Maruti Suzuki’s stock was trading at ₹11,780.1, reflecting a 0.75% decline on the National Stock Exchange (NSE) at 14:32 PM. The stock dip coincided with the company receiving a draft Assessment Order for the financial year 2021-22, which proposed certain additions and disallowances amounting to ₹2,966 crore against its reported income.

Impact on the Indian Automotive Industry

Maruti Suzuki’s expansion is expected to have a significant impact on the Indian automotive sector. The additional production capacity will not only boost vehicle availability but also create employment opportunities and contribute to the state’s industrial growth. Haryana has long been a key hub for automobile manufacturing, and Maruti Suzuki’s continued investment in the region reinforces its strategic importance.

Future Outlook and Expansion Plans

With this new investment, Maruti Suzuki is positioning itself for long-term growth in an evolving automotive landscape. The company is also exploring advancements in electric vehicle (EV) production and sustainable manufacturing practices. As consumer preferences shift toward greener mobility solutions, Maruti Suzuki is likely to integrate new technologies into its future plants.

Conclusion

Maruti Suzuki’s ₹7,410 crore investment in a third plant at Kharkhoda, Haryana, underscores its commitment to meeting growing market demand. The expansion will significantly enhance production capacity, ensuring the company remains at the forefront of India’s automobile sector. As Maruti Suzuki continues to innovate and expand, its role in shaping the future of mobility in India remains pivotal.