Maruti Suzuki India plans to invest Rs 77,500 crore over five years through FY31, with the money going towards capacity expansion, new models, R&D, sales infrastructure and greener manufacturing.
Highlights
- Maruti Suzuki plans Rs 77,500 crore capex between FY27 and FY31.
- FY27 capex will rise 40% to Rs 14,000 crore.
- Investment will support capacity expansion, new models and R&D.
- Spending will also cover sales, marketing, logistics and carbon-neutral measures.
- Maruti says vehicles produced from 2008 onwards are E20 compatible.
- In-house solar capacity is targeted to rise to 211.3 MW by FY31.
New Delhi: Maruti Suzuki India has raised its capital expenditure plan to Rs 77,500 crore for the five years through FY31 as the country’s largest carmaker steps up investment in manufacturing capacity, new vehicles, research and development and greener operations.
Maruti Suzuki Managing Director and CEO Hisashi Takeuchi outlined the investment roadmap while responding to shareholders at the company’s annual general meeting on Monday.
For FY27 alone, the automaker plans to spend Rs 14,000 crore, marking a 40% increase from around Rs 10,000 crore in the previous financial year. Cumulatively, the company has planned capex of Rs 77,500 crore from FY27 to FY31.
The latest investment plan is higher than the Rs 70,000 crore investment announced last year by Suzuki Motor Corporation President Toshihiro Suzuki for India over the next five to six years.
Where Will Maruti Invest?
The company plans to use the investment across several areas, including capacity expansion, development of new models, R&D activities and plant-related measures.
Maruti Suzuki will also invest in its marketing and sales infrastructure, logistics and initiatives aimed at reducing carbon emissions from its manufacturing operations.
Capacity expansion remains an important part of the company’s growth strategy. Maruti Suzuki’s installed production capacity is expected to reach 2.9 million units by the end of FY27 and 3.65 million units by the end of FY31.
The company has already commissioned two production lines at its Kharkhoda facility in Haryana, while work on a third line is progressing. It is also developing a new manufacturing site at Sanand in Gujarat.
Maruti Gives E20 Compatibility Update
Takeuchi also addressed concerns around ethanol-blended petrol, saying all Maruti Suzuki’s current products are E20 compatible.
According to the company, it started improving ethanol compatibility from the 2008 production year, meaning its vehicles produced from 2008 onwards are E20 compatible.
Focus on Green Manufacturing
Maruti Suzuki is also increasing its use of renewable energy as part of its carbon-neutral manufacturing strategy.
The automaker plans to raise its in-house solar capacity from 79.1 MW in FY26 to 211.3 MW by FY31. This is expected to meet nearly 35% of the company’s total electricity requirement.
For the remaining requirement, Maruti plans to procure green electricity, mainly from solar and wind sources. Biomass plants are also planned at its Manesar and Kharkhoda facilities and the new Sanand plant.
