Maruti Suzuki India has announced a major capacity expansion initiative with its board approving a ₹4,960-crore proposal to acquire land and enhance manufacturing capabilities in Gujarat. The decision, taken during the board meeting on Monday, represents a significant step in the company's growth strategy to meet increasing market demand.

Expansion Details and Investment Breakdown

The board has granted approval to acquire land for expanding production capacity at Khoraj Industrial Estate from Gujarat Industrial Development Corporation. The proposed capacity addition will be substantial, with plans to increase production by up to 10 lakh units (1 million units).

The company clarified that the overall investment for the project will be finalized and approved by the board while framing the phases of installation of capacity. The ₹4,960-crore amount specifically covers land acquisition, development, and preparatory activities.

Current Manufacturing Capacity and Utilization

Maruti Suzuki India currently operates with substantial manufacturing capabilities across multiple locations. The company's existing production infrastructure demonstrates its established presence in the Indian automotive sector.

The existing capacity includes units produced at the erstwhile Suzuki Motor Gujarat Pvt Ltd, which has been amalgamated with the company. The full utilization of current capacity underscores the necessity for this expansion to meet growing market demand.

Strategic Context and Future Plans

This land acquisition forms part of a larger strategic initiative announced by Suzuki Motor Corporation. In 2024, Suzuki Motor Corporation President Toshihiro Suzuki announced that the company's Indian arm would invest ₹35,000.00 crores to establish its second manufacturing facility in Gujarat with an installed production capacity of 10 lakh units per annum.

The Gujarat expansion represents Maruti Suzuki's commitment to strengthening its manufacturing footprint in India while addressing the growing demand in the domestic automotive market. The phased approach to capacity installation will allow the company to manage investment efficiently while scaling production capabilities systematically.

Maruti Suzuki India has announced a strategic partnership with Indian Oil Corporation Limited (IOCL) to establish vehicle service points at IOCL fuel stations across the country. This collaboration marks a significant step towards enhancing customer convenience by integrating automotive services with fuel station infrastructure.

Strategic Partnership Details

The partnership between Maruti Suzuki India and Indian Oil Corporation aims to create a comprehensive service ecosystem for vehicle owners. By establishing service points at IOCL fuel stations, customers will have access to vehicle maintenance and service facilities at convenient locations where they already visit for fuel.

Customer Benefits

This initiative is designed to provide multiple advantages to vehicle owners. Customers can now access vehicle servicing facilities at the same locations where they refuel their vehicles, creating a one-stop solution for their automotive needs. The integration of service points with fuel stations is expected to save time and provide greater accessibility to Maruti Suzuki's service network.

Network Expansion Strategy

The collaboration leverages Indian Oil Corporation's extensive network of fuel stations across India, providing Maruti Suzuki with strategic locations to expand its service reach. This partnership represents an innovative approach to service network expansion, utilizing existing infrastructure to enhance customer accessibility and convenience.

The establishment of vehicle service points at IOCL fuel stations demonstrates both companies' commitment to improving customer experience through strategic collaboration and infrastructure optimization.