Maruti Suzuki Capex: ₹14,000 Crore FY27 Investment Plan

Maruti Suzuki Share: Maruti Suzuki India plans to step up capital spending as it expands production capacity, broadens its product portfolio and prepares for a mix of electric vehicles, hybrids, CNG and internal-combustion engine models. 

Managing Director and CEO Hisashi Takeuchi announced the investment plans at the company’s 45th Annual General Meeting.

The company plans to increase FY27 capex from around ₹10,000 crore last year to ₹14,000 crore, a 40% year-on-year increase. From FY27 to FY31, total planned capex stands at ₹77,500 crore.

Where will Maruti Suzuki deploy the capex?

The planned investment will cover multiple areas across the company’s operations, including:

• Capacity expansion

• New model development

• Research and development

• Plant maintenance

• Marketing and sales infrastructure

• Logistics

• Carbon-neutrality measures

Maruti Suzuki has reached an annual installed production capacity of 29 lakh units following the commissioning of its fourth plant at Hansalpur, Gujarat, and second plant at Kharkhoda, Haryana.

The company aims to increase capacity from 29 lakh units to 40 lakh units. The roadmap includes two additional plants at Kharkhoda and three plants at the upcoming Sanand facility in Gujarat, with each plant having a capacity of 2.5 lakh units.

Maruti Suzuki targets seven new SUVs

Maruti Suzuki plans to introduce seven SUVs over the next 5 years as it seeks to strengthen its position in the SUV market. The company currently offers 5 SUV models: Fronx, Brezza, Jimny, Grand Vitara and Victoris.

The company expects its broader SUV portfolio, alongside its established small-car presence, to support its overall domestic market share.

Maruti Suzuki held an 83% share of the small-car market during April-July FY27 through models including Alto K10, S-Presso, Celerio and WagonR. Small-car volumes increased 63% year-on-year during the period.

What is Maruti Suzuki’s EV roadmap?

Maruti Suzuki introduced its first EV, the e Vitara, in FY26. The company has exported more than 43,000 units and sold around 8,500 units domestically so far.

The company plans to increase localisation of EV components, including batteries, as India’s EV ecosystem develops. Takeuchi said Maruti Suzuki will add a smaller EV to its portfolio as charging infrastructure improves.

The company is also designing flexibility into its new manufacturing facilities, allowing EVs, strong hybrids, CNG and internal-combustion engine vehicles to be produced on the same line.

By FY31, Maruti Suzuki expects EVs to account for 15% of domestic passenger vehicle volumes, hybrids 25%, CNG 35% and gasoline blended with biofuels 25%.

READ THIS: Ather Energy Shares Hit Record High After Konarc Launch

What does Maruti Suzuki’s dividend policy indicate?

Despite the planned increase in capital expenditure, Maruti Suzuki intends to maintain its dividend payout. The company’s policy provides for a payout ratio of 18-40% of profit, while the company has consistently maintained a payout of around 30%.

For FY26, the board recommended a record dividend of ₹140 per share. During the year, Maruti Suzuki reported consolidated revenue of ₹1,83,266 crore and profit of ₹14,445 crore.

Conclusion: What does this mean for investors?

Maruti Suzuki’s ₹77,500 crore investment plan through FY31 points to an expansion-led strategy spanning manufacturing capacity, SUVs, EVs, hybrids and other powertrains. Investors will be watching the pace of capacity additions, new-model launches, EV adoption and the company’s ability to maintain shareholder payouts alongside higher capital expenditure.