40 Lakh Cars, 7 New SUVs, More EVs: Inside Maruti Suzuki’s ₹77,500 Cr Growth Plan

Maruti Suzuki India will raise capital expenditure by 40 per cent year-on-year to Rs 14,000 crore in FY27 and plans to invest Rs 77,500 crore through FY31, Managing Director and CEO Hisashi Takeuchi told the company’s 45th Annual General Meeting on Monday.

The planned outlay will go into capacity expansion, new model development, research and development, plant maintenance, sales and marketing infrastructure, logistics and carbon-neutrality measures.

Takeuchi told shareholders at the AGM, "For FY27, we have planned a 40% jump in capital expenditure in a single year from around Rs 10,000 crore last year to Rs 14,000 crore this year. From FY27 to FY31, we have planned a capex of Rs 77,500 crore."

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

Capacity Expansion Roadmap

Maruti has already expanded. Its annual installed production capacity has reached 29 lakh units after the fourth plant at Hansalpur in Gujarat and the second plant at Kharkhoda in Haryana were commissioned this year.

Hansalpur accounts for 10 lakh units a year, while Manesar contributes 9 lakh units. Kharkhoda and Gurgaon add 5 lakh units each.

Takeuchi set out the next phase of expansion. "Our roadmap from 29 lakh units to 40 lakh units includes two additional plants at Kharkhoda and three plants at our upcoming facility in Gujarat, located at Sanand, each with a capacity of 2.5 lakh units," he said.

EV And Fuel Mix

The new factories are being built for flexibility. Takeuchi told shareholders that Maruti is designing its plants so they can build multiple powertrains on the same line.

"In our new plants, we can make electric vehicles (EVs), strong hybrids, CNG and internal combustion engine vehicles on the same line," he said.

By FY31, the company expects EVs to make up 15 per cent of domestic passenger vehicle volumes, hybrids 25 per cent, CNG 35 per cent and gasoline blended with biofuels 25 per cent.

The company introduced its first EV, the e Vitara, in FY26. It began exporting the model around August and launched it in India nearly six months later, in February.

Maruti has so far exported more than 43,000 units of the e Vitara and sold about 8,500 units in the domestic market.

Takeuchi laid out the company’s EV approach and localisation plan. "India's EV ecosystem is still evolving. We will continue to increase the localisation of EV components, including batteries, as the ecosystem develops.

We started from mid-upper segment EV considering the situation of charging infrastructure in India and also the availability of home charging capability," he said.

He added, "But as the infrastructure of EV charging will be ready in India, we will add a smaller EV in our portfolio."

SUVs, Small Cars, Dividends

Maruti is adding more SUVs. The company plans to launch seven SUVs over the next five years. It currently sells five SUV models—Fronx, Brezza, Jimny, Grand Vitara and Victoris.

Takeuchi said a wider SUV range, along with the company’s strong hold in small cars, should help lift its domestic market share.

Small cars remain a big pillar. Maruti held an 83 per cent share of the small-car market in April-July FY27 through models such as Alto K10, S-Presso, Celerio and WagonR. Volumes in the segment rose 63 per cent year-on-year in the period.

Takeuchi told shareholders, "There is a huge potential for small cars in future as household incomes continue to grow and we remain focussed in this segment through appropriate product interventions."

On shareholder returns, he said, "While our capital expenditure is increasing, we are consistently maintaining a high dividend payout ratio of around 30 per cent."

Maruti’s dividend policy provides for a payout ratio of 18-40 per cent of profit. For FY26, the board recommended its highest-ever dividend of Rs 140 per share.

In FY26, the company posted its highest consolidated revenue of Rs 1,83,266 crore and profit of Rs 14,445 crore.