Maruti Suzuki shares rise 2% as carmaker to invest Rs 35,000 crore for new manufacturing plant in Gujarat

Maruti Suzuki shares rise 2% as carmaker to invest Rs 35,000 crore for new manufacturing plant in Gujarat

• Maruti Suzuki to invest Rs 35,000 crore in new Gujarat plant near Sanand
• New plant to add 1 million vehicle capacity and create 12,000 jobs by FY29
• Stock closed 2 percent higher, leading gains on Nifty auto index

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Stock of Maruti Suzuki closed 2% higher at Rs 16,182 on January 19, the top gainer on Nifty auto index as the automaker is planning investment worth Rs 35,000 crore in a plant it plans to set up in Gujarat.

The plant will add production capacity of up to 1 million vehicles a year and is expected to operate in FY29

Last week, the firm's board approved an initial investment of Rs 4,960 crore to acquire land for the plant.

ICICI Securities said the investment strengthens Maruti Suzuki'ss long-term growth visibility and reinforce its competitive moat through scale, capacity readiness and an expanded service ecosystem.

So far in 2026, Maruti Suzuki stock fell 3.1% as against the 2% decline in Nifty Auto index.

Maruti Suzuki India Limited will develop a new plant near Sanand in Ahmedabad district with an investment of Rs 35,000 crore, facilitating potential employment opportunities for 12,000 individuals, the Gujarat government has said.

The country’s largest passenger car manufacturer will establish the plant at Khoraj GIDC, an official release said.

Chief Minister Bhupendra Patel on Saturday handed over an “investment letter” to Maruti Suzuki Managing Director Hisashi Takeuchi in Gandhinagar for this plant.

“Maruti Suzuki India Limited will establish a new vehicle manufacturing plant at Khoraj on 1,750 acres of land made available by GIDC (Gujarat Industrial Development Corporation), with an investment of Rs 35,000 crore,” it said.

This is not merely a new automobile manufacturing facility, but also an important step towards further strengthening the country’s largest and most competitive automobile manufacturing corridor, the release quoted CM Patel as saying.

PM Modi had invited Suzuki Motors to invest in Gujarat in 2012, following which the carmaker’s first plant in the state came up at Hansalpur, the release said.

The Hansalpur plant currently produces 7.5 lakh cars per year, and a plan has been made to increase this by 2.5 lakh cars to reach a production of 10 lakh units per year by the 2026-27 financial year, it added.