Maruti Suzuki Increases Capex Outlay to ₹77,500 Crore Through FY31 for Capacity and Product Expansion

Maruti Suzuki India Limited (MSIL), the country's largest passenger vehicles manufacturer, has announced an upward revision in its capital expenditure plans. The company will invest approximately ₹77,500 crore up to financial year 2030-31 (FY31) to support capacity expansion across its plants and develop new products.

Speaking at the company's 45th annual general meeting, Hisashi Takeuchi, Managing Director and Chief Executive Officer of MSIL, outlined the funding trajectory in response to shareholder queries. He stated that the company has planned a 40 per cent increase in capital expenditure for a single year, moving from approximately ₹10,000 crore last year to ₹14,000 crore for the current financial year. Cumulatively, the planned capex will span from FY26-27 to FY30-31.

Takeuchi noted that the primary allocations will fund capacity expansion, new model development, research and development (R&D), plant maintenance, marketing and sales infrastructure, carbon reduction measures, and logistics. This follows a previous announcement by Toshihiro Suzuki, Representative Director and President of parent firm Suzuki Motor Corporation, regarding a ₹70,000 crore investment over a five-to-six-year period to strengthen Indian operations.

Addressing queries regarding fuel standards, Takeuchi confirmed that all current ongoing products manufactured by the company are E20 fuel compatible. He added that the company has maintained this ethanol compatibility standard for vehicles produced since 2008.

On the sustainability front, MSIL outlined multiple initiatives aimed at achieving carbon-neutral manufacturing. The company plans to increase its in-house solar capacity from 79.1 megawatts in FY25-26 to 211.3 megawatts by FY31, which is expected to cover roughly 35 per cent of its total electricity requirements. The remainder of the electricity needs will be met through green electricity purchases, primarily from solar and wind power. Additionally, biomass plants are scheduled for installation at the Manesar, Kharkhoda, and Sanand factories.

Regarding product strategy and technological readiness, Takeuchi explained that the automaker works extensively with Suzuki Motor Corporation in Japan on future-ready technologies. He also highlighted that the company engages with startup companies to explore new innovations and process technologies.

Responding to shareholder observations about competition in the premium utility vehicle segment, Takeuchi stated that the company plans to introduce 10 new SUVs over the next five years. He emphasized that MSIL is expanding both its small car and SUV portfolios to strengthen its overall market position in India.

"Maruti Suzuki's decision to scale up its capex to ₹77,500 crore reflects a long-term commitment to manufacturing scale and product diversification in the Indian market. For the broader business and startup ecosystem, large industrial players actively engaging with startups for process innovations and advanced technologies opens up valuable B2B collaboration pathways. Scaling production infrastructure while simultaneously investing in green energy and R&D demonstrates a balanced approach to industrial growth and sustainability." — Dr. Shishir Gupta, Founder & CEO, StartupLanes