New Delhi: Preparing to step up its electric vehicle (EV) play, India's largest carmaker Maruti Suzuki India Ltd has started production at a new manufacturing plant at its Gujarat facility, easing capacity constraints that have so far held back supplies of its maiden EV, the eVitara, in the domestic market.
Built at an investment of ₹3,900 crore, the new plant at Hansalpur has an annual capacity of making 250,000 EVs, taking the facility's total capacity to 1 million units. Maruti's overall annual manufacturing capacity across its four plants is now 2.9 million vehicles, as the company works towards its target of 4 million units by 2030. Manufacturing is currently spread across four plants: Hansalpur in Gujarat-its only facility manufacturing EVs-and Gurugram, Kharkhoda and Manesar in Haryana.
The eVitara has so far been focused on exports with a limited capacity of 2,000 per month for the domestic market, restricting its sales in a competitive market that counts Tata Motors Passenger Vehicles, Mahindra & Mahinda and JSW MG Motor India as the top three players.
"The start of commercial production at the fourth plant of our Hansalpur facility augments its annual production capacity to 1 million vehicles, making it India's largest passenger vehicle manufacturing facility at a single location," Hisashi Takeuchi, managing director and chief executive officer, Maruti Suzuki, said in a statement on Thursday.
"The new line will further strengthen our ability to meet the growing demand from customers in India and overseas, while advancing our 'Make in India, Make for the World' vision and expanding our global footprint," Takeuchi said.
In June, the company had said that its EV scale-up in the domestic market will happen only post September, as it has to meet some prior commitments for the model. The eVitara is rebadged and sold to Toyota, which sells it in global and domestic markets.
Maruti had started production of its first electric vehicle at the Hansalpur plant in August last year, when it began selling the model in the international markets. It went on to launch its debut electric model in the domestic market in February and has sold nearly 8,000 units of the eVitara domestically, according to data from the government's Vahan portal.
Maruti is now India's fourth largest electric car maker, ahead of Vinfast, Hyundai and Kia.
The planned production boost comes after the company missed the target of producing 70,000 EVs last fiscal year. It exported 25,000 EVs, and while its domestic retail sales were at 1,400 units domestically in fiscal year 2026 (FY26), it was way off the eVitara production target set by chairman R.C. Bhargava at the start of the fiscal year.
Maruti's top executives have earlier flagged limited EV capacity as a challenge, as sales across other powertrains have surged. Compressed natural gas (CNG) vehicle sales have surged while overall internal combustion engine (ICE), or traditional fuel-powered vehicles, have also seen a demand surge since the cut in the goods and services tax rates last year.
"We are trying our level best to see how we can increase the capacity of the CNG as well as electric vehicles because we are seeing very good traction in the electric vehicle," said Partho Banerjee, senior executive officer, marketing and sales, Maruti Suzuki, said at a press conference last month.
"The booking (of EVs) has almost doubled... But at the same time, we have some prior commitments which we need to honour. So, we need to wait till September, when the capacities get enhanced… It (monthly production of EVs) will be around 2,000 till September," Banerjee added.
While the company is yet to detail its electric vehicle strategy, including portfolio plans, but it is aiming to bring 15% of its sales from EVs by FY31, as against around 1% at the end of FY26.
Since the start of the calendar year, Maruti's share price has fallen 15%, as against just a 0.7% decline in Nifty Auto. The shares were up 1.7% during trading hours on Thursday, as against a 1.6% rise in Nifty Auto.

