Maruti Suzuki has announced plans to invest 350 billion rupees ($3.9 billion) in a new vehicle manufacturing plant in India, according to a statement released on 17 January 2026. The move marks one of the company’s largest domestic investments and underscores its long-term commitment to the Indian market.

The new plant will be built in the western Indian state of Gujarat, where Maruti Suzuki already operates major manufacturing facilities. Therefore, the expansion will strengthen the company’s production base and support rising demand for passenger vehicles.

🏭 Capacity Expansion and Timeline

The automaker said the new facility will add up to one million vehicles per year to its production capacity once fully operational. Construction will take place in phases, allowing gradual increases in output as infrastructure comes online.

Maruti Suzuki aims to meet growing domestic demand while also supporting exports. Consequently, the company expects the plant to play a key role in its long-term production strategy.

🇮🇳 India’s Growing Auto Market

India remains one of Maruti Suzuki’s most important markets. The country has seen steady growth in car ownership, supported by rising incomes and urbanisation. Meanwhile, competition in the auto sector has intensified as global manufacturers expand their presence.

Maruti Suzuki said the investment aligns with expectations of continued demand growth over the next decade. Therefore, expanding manufacturing capacity now allows the company to prepare for future market conditions.

🔧 Jobs and Local Manufacturing

The company said the new plant will create thousands of direct and indirect jobs, including roles in manufacturing, logistics, and supplier networks. In addition, the project will support India’s broader push to strengthen domestic manufacturing.

State officials welcomed the announcement, noting that Gujarat has emerged as a major hub for automotive production. Consequently, the investment is expected to boost regional economic activity and infrastructure development.

📈 Strategic Focus and Future Plans

Maruti Suzuki has continued to invest heavily in India while also adapting to industry shifts such as cleaner technologies and changing consumer preferences. The company said the new plant will be flexible enough to support different vehicle platforms as needed.

Meanwhile, executives stressed that India will remain central to Maruti Suzuki’s global operations. Therefore, the investment reflects confidence in the market’s long-term stability and growth potential.

🧭 Looking Ahead

With construction set to begin after regulatory approvals, Maruti Suzuki said it will provide updates as the project progresses. For now, the announcement signals a strong vote of confidence in India’s automotive sector.

The investment also highlights how global automakers continue to prioritise capacity expansion in fast-growing markets, even amid economic uncertainty elsewhere.