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Maruti Suzuki India has raised its five-year capital expenditure plan to ₹77,500 crore

ICICIdirect Research 01 Sep 2026 DISCLAIMER

News:  According to media sources, Maruti Suzuki India has raised its five-year capital expenditure plan to ₹77,500 crore through FY2030-31, up from the earlier ₹70,000 crore plan, to fund capacity expansion, new-model development, R&D, technology, logistics and carbon-neutral initiatives. For FY27, capex is planned at ₹14,000 crore, a 40% increase from around ₹10,000 crore last year. Chairman RC Bhargava said GST reforms have provided a fresh push to the economy and could revive India’s small-car market. Maruti expects the passenger-vehicle market to reach 6.1–6.3 million units by 2031, with the small-car segment growing faster than in recent years. Maruti Suzuki’s total manufacturing capacity stands at 2.9 million units per annum

View: The announcements are structurally positive for Maruti Suzuki’s long-term growth outlook and are excerpts from the recently held AGM with minimal addition to our investment thesis on the company wherein Maruti remains a play on 2-W to PV upgrade for domestic mobility users. Higher capex and aggressive capacity expansion indicate that expectation of sustained demand rather than a short-term recovery, while the renewed focus on affordable small cars could help Maruti regain volume momentum if GST-related price benefits stimulate mass-market demand. For YTDFY27, Sales at Maruti have grown by ~30% YoY wherein compact car volume grew by ~38%. We had already built in ₹ 14,000 crore as the capex spend for FY27E, as guided by the company earlier.

Impact: Positive

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