Maruti Suzuki Plans to Expand Production Capacity by 1 Million Units

[Capacity Expansion] Maruti Suzuki has invested USD 550 million to acquire land, planning to add up to 1 million units of annual production capacity.

Core Strategy: Doubling Down on Local Manufacturing Amid Headwinds

Amid stalled electric vehicle (EV) policies in India, Maruti Suzuki has opted to expand capacity for internal combustion engine and hybrid vehicles. The company recorded domestic sales of 178,646 units in December 2025, a year-on-year increase of 37%, with order backlogs for entry-level models stretching approximately one and a half months.

Strategic Foundation: Betting on Dual Engines of Domestic Demand and Exports

In August last year, Suzuki announced plans to invest USD 8 billion in India over the next five to six years and launched production of the e Vitara electric SUV, aiming to position India as a global EV manufacturing hub. Currently, its 17 vehicle models are exported to around 100 countries.

Industry Impact: Companies Forging Independent Paths Amid Policy Inertia

India’s Scheme for Promotion of Manufacturing of Electric Vehicles and Components (SPMEPCI) has been described by officials as "effectively defunct," with its online application portal already shut down and no automakers having responded. Maruti Suzuki’s capacity expansion highlights the strategic resolve of traditional automakers to act independently during this policy vacuum.