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Maruti Suzuki looks for a major production scale up from next month with an aim to raise annual installed capacity by five lakh units
Maruti Suzuki India Limited (MSIL) is bracing for a major production scale up from next month with an aim to raise annual installed capacity by five lakh vehicles. The decision comes against the backdrop of anticipated GST rate revisions and sustained booking momentum – both of which are expected to keep demand elevated in the coming financial year.
The expansion will be executed in two different phases. The Kharkhoda facility in Haryana will activate its second assembly line in the first quarter of FY27 – contributing an additional 2.50 lakh units per year. It will be followed by the fourth production line at the Hansalpur plant in Gujarat in the second quarter of FY27 – adding another 2.50 lakh units yearly.
Once both lines are fully ramped up, the company output could increase by nearly 20,000 vehicles per month. At present, supply constraints remain evident. All plants are operating at peak utilisation yet pending customer orders stand at approximately two lakh vehicles. Dealer inventory remains lean at around 12 days which includes about seven days of units in transit.
It is significantly lower than the industry preferred level of around 30 days – leaving limited buffer to absorb fluctuations in demand. Recent sales data emphasises the pressure on production. Passenger vehicle dispatches touched 1.61 lakh units last month – marginally higher than the 160,791 units recorded during the same period in 2025.
Bookings expanded by 20 per cent over the previous month while utility vehicle volumes rose 12 per cent courtesy of strong appetite for SUVs. Current manufacturing volumes range between 2.20 lakh and 2.30 lakh units each month. Of these, about 1.70 lakh to 1.80 lakh units are earmarked for domestic sales while exports account for around 50,000 units.
Overseas demand continues to remain in good condition – particularly across Africa and the Middle East. Managing the balance between supply and demand remains critical for the largest car producer in the country. Meanwhile, prolonged delivery timelines could push prospective customers toward competing brands.
To counter this, production scheduling is reviewed frequently with output adjusted across hatchbacks, sedans and utility vehicles to keep waiting periods under control. The scale up also has global implications. It is worth noting that the Indo-Japanese brand contributes nearly 56 per cent of the total worldwide volumes of parent firm Suzuki Motor Corporation.
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