Maruti Suzuki India (MSIL) plans to allocate ₹77,500 crore for capital expenditures (capex) during the financial years 2026-27 (FY27) through 2030-31 (FY31). These funds will be used to expand production capacity, develop new models, conduct research and development (R&D), improve sales infrastructure, and enhance eco-friendly manufacturing.
This was announced by Hisashi Takeuchi, Managing Director and CEO of the company, at a meeting on Monday. This increase significantly surpasses MSIL's previous five-year plans.
Previously, in February 2025, MSIL's parent company, Suzuki Motor Corporation, announced an allocation of 1.2 billion yen (equivalent to approximately ₹70,000 crore) for Maruti's operations in India over six years, from FY26 to FY31, to support local manufacturing and electrification goals.
Capital Expenditure Plan Details
Takeuchi specified that for FY27, capital expenditure is expected to grow by 40 percent compared to the previous year, increasing from approximately ₹10,000 crore to ₹14,000 crore. The total planned capex for the period FY27 to FY31 amounts to ₹77,500 crore.
Maruti's current installed production capacity has reached 2.9 million units annually, thanks to the ongoing expansion at Kharkhoda in Haryana and the launch of the fourth line in Hansalpur in Gujarat. The company intends to increase this total capacity to 4 million units through further multi-phase expansions, including opening another plant in Sanand, Gujarat.
The planned investments will be distributed across several areas: capacity expansion, new model development, R&D activities, plant maintenance, marketing and sales infrastructure, as well as measures for carbon emission reduction and logistics.
Development Strategy and Production Flexibility
These expenditures will also support Maruti's expansion into the Sports Utility Vehicle (SUV) segment. The company plans to introduce seven new SUV models over the next five years, aiming to strengthen its position in a segment where it is losing market share due to competition.
Simultaneously, Maruti maintains flexibility in its production processes, accounting for the changing ratio between Electric Vehicles (EVs), hybrids, Compressed Natural Gas (CNG) vehicles, and petrol/diesel vehicles. Takeuchi noted that new plants can produce EVs, hybrids, CNG, and Internal Combustion Engine (ICE) vehicles on a single line, while ICE vehicles will remain a significant part of the business due to the expected growth in Liquefied Biogas (CBG) usage.
This flexibility is intended to allow Maruti to respond quickly to changes in consumer demand, avoiding the need to create separate production lines for each powertrain technology.
Impact of External Factors and Pricing Policy
The increase in investment comes amid pressure caused by rising raw material and component prices, particularly following the conflict in the Middle East that began in February of this year. Takeuchi emphasized that the situation in the Middle East negatively affects not only export business but also increases the cost of raw materials and components.
Maruti plans to offset the impact of rising input costs by increasing prices and reducing costs in various areas of its business. However, Takeuchi warned that the company would be cautious not to pass on the entire rise in expenses to customers, thereby harming demand. He added that they would act very carefully to avoid seriously affecting the current positive sales trend.
According to Takeuchi, this approach will ultimately help improve the company's profitability, which will positively reflect on its market value.
Market Trends and Environmental Initiatives
Maruti's comments on costs come against a backdrop of sustained high demand in certain key segments. Sales of small cars grew by 63 percent from April to July of this year compared to the same period last year, with the market share in this segment reaching 83 percent. Takeuchi noted that the potential for small cars remains significant as household incomes rise, and the company continues to focus on this segment through appropriate product solutions.
In the electric vehicle sector, Maruti has begun exporting its EVs to Europe and is increasing component localization. The company already has a locally manufactured e-axle and will continue to increase localization, including batteries, as the domestic EV ecosystem develops.
Furthermore, Maruti is intensifying investments in cleaner production. It is planned to increase its own solar capacity from 79.1 MW in FY26 to 211.3 MW by FY31, which will cover almost 35 percent of total electricity consumption. The remaining energy will come from renewable sources—solar and wind projects.