Maruti Suzuki India has announced a substantial increase in its capital expenditure to Rs 77,500 crore by FY31, earmarking funds for significant capacity expansion, new model development, and a strong push towards carbon-neutral manufacturing and E20 fuel compatibility.
Key Points
- Maruti Suzuki India has raised its capital expenditure to Rs 77,500 crore for the five years leading up to FY31.
- The substantial investment will be allocated towards capacity expansion, new model development, R&D activities, and enhancing marketing and sales infrastructure.
- The company plans to increase its in-house solar capacity to 211.3 megawatts by 2030-31, covering approximately 35 per cent of its total electricity needs.
- All Maruti Suzuki cars produced from 2008 onwards are compatible with E20 fuel, ensuring readiness for future fuel standards.
- Biomass plants will be established at Manesar, Kharkhoda, and the new Sanand factory as part of carbon-neutral manufacturing efforts.
Car market leader Maruti Suzuki India has increased its capex outlay to Rs 77,500 crore for five years till FY31 for capacity expansion, new models and R&D among others, its Managing Director and CEO Hisashi Takeuchi said on Monday.
Responding to a query from shareholders at the company's annual general meeting, he also assured that Maruti Suzuki cars starting from production year 2008 are compatible with E20 fuel.
Capex Breakdown and Future Plans
"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.
Last year, Toshihiro Suzuki, Representative Director and President of Suzuki Motor Corporation -- the parent of Maruti Suzuki India -- had stated that the company would invest Rs 70,000 crore in the next five to six years in India to strengthen its operations.
Elaborating where the investments would be utilised, Takeuchi said,"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."
E20 Fuel Compatibility and Sustainability
To another question about E20 fuel compatibility, Takeuchi said,"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."
On sustainability efforts in manufacturing, he said the company is taking many steps to achieve carbon neutral manufacturing, including increasing in-house solar capacity from 79.1 megawatt in FY25-26 to 211.3 megawatt by 2030-31, "which will cover almost 35 percent of our total electricity requirements".
He further said,"The remaining portion we are going to buy green electricity mainly by solar and wind power for our plant operations."
The company will also put up biomass plants at its Manesar and Kharkhoda factories and also at the new plant at Sanand in Gujarat.
