Japanese automaker Suzuki Motor has approved plans for a new vehicle manufacturing plant through its Indian arm, Maruti Suzuki India.

The proposed plant in Sanand, Gujrat, will be built on a site covering around seven million square metres and is designed to have an annual production capacity of one million vehicles.

The total outlay for land acquisition and associated costs is estimated at Rs49.6bn ($549.48m).

Maruti Suzuki will purchase the land from the Government of Gujarat.

The move follows a basic agreement reached with the State of Gujarat in January 2024 for the development of a second automobile manufacturing plant in the state.

In its statement, Suzuki said: “The State of Gujarat offers a well-developed supply chain and infrastructure. In addition, its proximity to ports makes it an advantageous location not only as a production base for the Indian domestic market, but also as an export hub for complete vehicles. Furthermore, Sanand, where the new plant will be built, provides excellent access to highways and railway networks.”

The investment is aimed at supporting expected growth in India’s automobile market and expanding vehicle exports from the country, aligned with the “Make in India” initiative.

Maruti Suzuki currently operates manufacturing facilities in Gurugram and Manesar in Haryana, Hansalpur in Gujarat, and Kharkhoda in Haryana.

The addition of the new Sanand plant will further expand the company’s manufacturing presence in India.

Last December, Suzuki Motor Corporation began rolling out “Ollo Factory,” an AI-based work analysis platform developed and supplied by Ollo, as part of its broader Suzuki Smart Factory programme.

The software was initially rolled out at the Sagara Plant’s assembly operations in July 2025, before being deployed on the plant’s engine line in December 2025.