Maruti Suzuki Prepares to Increase Production Next Month to Reach 5 Lakh Units Annually
Maruti Suzuki India Limited (MSIL) is set to ramp up production next month with the aim of raising its annual installed capacity to 5 lakh vehicles. This decision comes in response to changes in GST rates and a steady rise in bookings, both of which suggest sustained demand in the upcoming financial year.
The expansion will occur in two phases. In the first quarter of FY27, the second assembly line will begin operations at the Kharkhoda facility in Haryana, adding 2.5 lakh units per year. Then, in the second quarter of FY27, the Hansalpur plant in Gujarat will add its fourth production line, also contributing 2.5 lakh units annually.
Once both lines are fully operational, the company could boost its monthly output to around 20,000 vehicles. Currently, supply constraints are evident, as all plants are operating at full capacity, yet pending orders have surged to nearly 2 lakh units. Dealer inventory stands at just 12 days, with about 7 days of stock still in transit.
This is much lower than the industry standard of around 30 days, leaving little buffer to manage demand fluctuations. Recent sales data shows the pressure on production: last month, passenger car dispatches reached 1.61 lakh units, slightly higher than 160,791 units from the same period in 2025.
Bookings rose by 20% compared to the previous month, and strong demand for SUVs drove utility vehicle sales up by 12%. Currently, production is between 2.20 lakh and 2.30 lakh units monthly, with about 1.70 lakh to 1.80 lakh units sold domestically and the remaining 50,000 units exported.
Demand abroad remains strong, especially in Africa and the Middle East. For the country’s largest carmaker, balancing supply and demand is crucial—delays in delivery could push customers toward competitors.
To address this, production schedules are being regularly reviewed, and output for hatchbacks, sedans, and utility vehicles is adjusted to keep waiting times in check. This scale-up will also have a global impact, as the Indo-Japanese brand contributes roughly 56% of total volume for its parent company, Suzuki Motor Corporation, globally.