Maruti Suzuki plans Rs 77,500 cr capex over 5 yrs

Maruti Suzuki, India's largest carmaker, has announced plans to invest Rs 77,500 crore in capital expenditure over the next five years, according to RC Bhargava, the company's Chairman. This significant investment comes in the wake of the GST reset, which has boosted demand across several sectors of the Indian economy. Bhargava addressed shareholders at the company's 45th annual general meeting, stating that the tax reforms provided a crucial buffer during the challenging period, and that the Indian economy continues to perform well despite the ongoing issues in the West Asia region and the impact of the war on global markets.

He expressed confidence in the Indian car industry's growth, projecting it to reach 6.1-6.3 million vehicles by 2031, with a significant increase in the small car market share. The company has also planned a 40% increase in capex in the current fiscal year, bringing its total investment from FY26-27 to FY30-31 to Rs 77,500 crore.

This investment will cover various areas, including manufacturing capacity, product development, and logistics, and the company has assured that all its current vehicles are compatible with E20 petrol.