Maruti raises FY27-31 capex target to ₹77,500 crore for expansion, R&D

Maruti Suzuki India (MSIL) plans to spend ₹77,500 crore on capital expenditure (capex) between 2026-27 (FY27) and 2030-31 (FY31) as the country’s largest carmaker steps up investments in manufacturing capacity, new models and research and development (R&D), its managing director (MD) and chief executive officer (CEO) Hisashi Takeuchi said on Monday.

 

This shows that MSIL has significantly increased its capex target for the five-year period between FY27 and FY31.

 

Previously, in February 2025, Suzuki Motor Corporation — MSIL’s parent company — had announced that it would channel 1,200 billion yen (approximately ₹70,000 crore) into Maruti’s Indian operations over a six-year period from FY26 to FY31 to support local manufacturing and electrification goals.

  

Takeuchi, during the company’s annual general meeting (AGM) on Monday, said: “Regarding the capex side, for FY27, we have around a 40 per cent year-on-year jump in capex…from around Rs 10,000 crore last year to Rs 14,000 crore this year. Cumulatively, during FY27 to FY31, we have planned a capex of Rs 77,500 crore,” Takeuchi said.

 

Maruti’s installed production capacity has already reached 2.9 million units a year following ongoing expansions at Kharkhoda in Haryana and the commissioning of the fourth line at Hansalpur in Gujarat. The company plans to scale this total capacity up to 4 million units through further multi-phase expansions, including another plant coming up at Sanand, Gujarat.

 

Takeuchi said the planned capex would be spread across several areas. “Capex is planned towards capacity expansion, new model development, R&D activities, plant maintenance, marketing and sales infrastructure, carbon emission reduction measures and logistics, and so on,” he noted.

 

The spending will also support Maruti’s expansion in the sport utility vehicle (SUV) segment. Takeuchi said the company would introduce seven new SUVs over the next five years as it looks to strengthen its position in a segment where it has been losing share to rivals. At the same time, Maruti plans to retain flexibility in its manufacturing operations as the mix between electric vehicles (EVs), hybrids, compressed natural gas (CNG), and petrol and diesel vehicles changes.

 

“In our new plants, we can make EVs, hybrid vehicles, CNG and ICE vehicles on the same line. ICE vehicles will also continue to remain a significant part of our business, with the expected increase in usage of compressed biogas, which is called CBG,” Takeuchi said. ICE refers to internal combustion engine vehicles, which use a conventional engine to burn petrol or diesel.

 

The flexibility built into new plants is aimed at allowing Maruti to respond to changes in customer demand without having to build separate manufacturing lines for each powertrain technology, he stated.

 

The higher investment comes at a time when the company is also facing pressure from rising commodity and component costs, especially after the conflict in West Asia that began in February this year.

 

“There has been a big impact from the West Asian situation. This West Asian situation, in fact, not only affects our export business, but also increases our commodity prices and component costs,” he said.

 

Maruti plans to recover the impact of higher input costs through a combination of price increases and cost reductions across its businesses. However, Takeuchi said the company would be cautious about passing on the entire increase to customers so that it does not hurt demand.

 

“We will do this so that it will not have a major impact on our current positive sales situation. We will do this very carefully,” he added.

 

Takeuchi said the approach would eventually help improve the company’s profitability. “Consequently, I think our profit situation will be improved, and that will have a positive impact on our share price,” he said.

 

Maruti’s comments on costs come as the company continues to see strong demand in some of its key segments. Its small-car volumes rose 63 per cent between April and July this year from the year-ago period, while its market share in the segment stood at 83 per cent. Takeuchi said there remained significant potential for small cars as household incomes increase.

 

“There is a huge potential for small cars in future and the company continues to remain focused on this segment through appropriate product intervention,” he mentioned.

 

On the EV front, Maruti has started exporting its electric vehicles to Europe and is increasing localisation of EV components. Takeuchi said the company already had a locally manufactured e-axle and would continue to increase localisation, including batteries, as the domestic EV ecosystem develops.

 

Maruti is also increasing investments in cleaner manufacturing. The company plans to raise its in-house solar capacity from 79.1 MW in FY26 to 211.3 MW by FY31, which Takeuchi said would meet nearly 35 per cent of its total electricity requirements. The remaining electricity would be sourced through green power from solar and wind projects.