Maruti Capex is set to rise sharply as Maruti Suzuki India plans to invest ₹77,500 crore between FY27 and FY31. The investment will support manufacturing capacity, new model development, research and development (R&D), plant maintenance and other business requirements. The plan marks a significant increase in the company’s investment programme.
Maruti Capex to Support Capacity Expansion
The Maruti Capex plan will support the company’s efforts to expand production capacity in India. Maruti Suzuki’s installed capacity has reached 2.9 million vehicles a year following expansion at Kharkhoda in Haryana and the commissioning of the fourth production line at Hansalpur in Gujarat.
The company plans to increase its total production capacity to 4 million units through further expansion. A new plant is also being developed at Sanand in Gujarat.
Maruti Capex to Fund New Models and R&D
A major part of the planned Maruti Capex will go towards new model development and R&D. The company plans to launch seven new SUVs over the next five years as it works to strengthen its position in the growing SUV segment.
The investment will also cover plant maintenance, marketing and sales infrastructure, logistics and measures to reduce carbon emissions.
Flexible Manufacturing to Support EV Growth
Maruti Suzuki is also building flexibility into its new manufacturing facilities. The company plans to manufacture electric vehicles (EVs), hybrids, CNG vehicles and internal combustion engine vehicles on the same production lines.
This approach will allow the company to adjust production according to changes in customer demand. It will also reduce the need for separate manufacturing lines for different powertrain technologies.
Maruti Capex Supports EV Localisation
The company has started exporting its electric vehicles to Europe and is increasing the localisation of EV components. Maruti Suzuki already has a locally manufactured e-axle and plans to increase localisation further, including batteries, as India’s EV ecosystem develops.
The higher Maruti Capex allocation is expected to support the company’s long-term transition towards cleaner and more locally manufactured vehicle technologies.
Maruti Faces Rising Input Costs
The increased investment comes as Maruti Suzuki faces higher commodity and component costs. Managing Director and CEO Hisashi Takeuchi said the West Asian situation has affected both export operations and input costs.
The company plans to manage the impact through a combination of price increases and cost reductions. However, Maruti intends to take a cautious approach to price increases to protect demand.
Maruti Expands Solar and Green Power Capacity
Maruti Suzuki is also increasing its investment in cleaner manufacturing. The company plans to increase its in-house solar capacity from 79.1 MW in FY26 to 211.3 MW by FY31.
The expanded solar capacity is expected to meet nearly 35% of the company’s total electricity requirements. The remaining electricity will be sourced through green power from solar and wind projects.
The Maruti Capex plan reflects the company’s broader strategy to expand production, strengthen its product portfolio, accelerate R&D and support the transition towards cleaner mobility. With ₹77,500 crore planned through FY31, Maruti Suzuki is increasing investment across manufacturing, technology and sustainability.
Source: Business Standard
