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Maruti Suzuki Board approves third manufacturing line in Kharkhoda, Haryana

ICICIdirect Research 28 Mar 2025 DISCLAIMER

Maruti Suzuki has announced the establishment of a third manufacturing plant (assembly line) in Kharkhoda, Haryana, with an investment of ₹7,410 crores, aimed at boosting the company's production capacity by an additional 2.5 lakh vehicles annually.  

This new facility is part of a strategic expansion plan that will increase the total production capacity at Kharkhoda to 7.5 lakh vehicles per year by 2029, complementing the existing plant and another one currently under construction, each of which also has a capacity of 2.5 lakh vehicles per year. 

Earlier in February 2025, the company has walked the talked in terms of commissioning of new plant and is tandem with its earlier guidance which took the total capacity available at the company to in excess of 25 lakh units per annum with FY25E sales volume expected at 22.8 lakh units and corresponding figure for FY27E at 26.5 lakh units.  

These investments are in tandem with its overall big plan to augment domestic capacity from ~24 lakhs units to ~40 lakh+ units by FY31
 
With steady growth on the anvil supported by consumption boost in terms of relaxation of personal income tax in FY26E and 8th pay commission implementation in FY27E, we have a positive view on the company and have a BUY rating thereby valuing it at ₹ 15,400 i.e. 26x P/E on FY27E.

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