Maruti Suzuki Plans Rs 77,500 Crore Capex Through FY31 for Expansion and R&D

Maruti Suzuki India has raised its capital expenditure plan to Rs 77,500 crore through FY31, stepping up investments in capacity expansion, new model development and research and development as the country’s largest carmaker prepares for the next phase of growth.

Managing Director and CEO Hisashi Takeuchi told shareholders at the company's annual general meeting on Monday that the company has also sharply increased its near-term spending plans, with capex for FY26-27 set to rise 40% to Rs 14,000 crore from around Rs 10,000 crore in the previous year.

"Regarding the capex side for FY26-27, we have planned a 40 per cent jump in capex expenditure in a single year, from around Rs 10,000 crore last year to Rs 14,000 crore this year. Cumulatively, during FY26-27 to FY30-31, we have planned a capex of Rs 77,500 crore," he said in response to a shareholder query.

The latest plan is higher than the Rs 70,000 crore investment announced last year by Toshihiro Suzuki, Representative Director and President of Suzuki Motor Corporation, Maruti Suzuki India's parent company, for strengthening the automaker's operations in India over the next five to six years.

Takeuchi said the expanded investment programme would cover a wide range of areas, including manufacturing capacity, product development and technology.

"Capex is planned for capacity expansion, new model development, R&D activities, plant measures, marketing and sales infrastructure, carbon neutral measures, and logistics, and so on."

Takeuchi also sought to put to rest concerns over the compatibility of Maruti vehicles with E20 petrol, assuring shareholders that the company's cars produced since 2008 can run on the fuel.

"I would like to assure that all of our current ongoing products are E20 compatible products. Actually, we have improved our compatibility to ethanol from the production year 2008. So after 2008, all of our products are E20 compatible."

Alongside capacity expansion, Maruti is stepping up investments in cleaner manufacturing. Takeuchi said the company plans to increase its in-house solar power capacity from 79.1 MW in FY25-26 to 211.3 MW by FY31, which would meet nearly 35% of its total electricity requirements.

"The remaining portion we are going to buy green electricity mainly by solar and wind power for our plant operations," he said.

The company is also planning biomass plants at its Manesar and Kharkhoda facilities, as well as at its upcoming plant in Sanand, Gujarat, as part of its broader push towards carbon-neutral manufacturing.