Maruti Suzuki will spend ₹77,500 crore between FY27 and FY31 to expand capacity and roll out new models, as small car demand picks up pace.

The country’s largest carmaker shared this updated spending plan at its annual general meeting.

Chairman RC Bhargava said recent GST reforms have given the auto industry a fresh push, and the company is now reworking its longer-term sales and production targets to match this changing demand.

For the current year alone, Maruti Suzuki has set aside ₹14,000 crore, a 40% jump from the ₹10,000 crore it spent last year.

This money will go toward building more manufacturing capacity, developing new vehicles, research work, and upgrading its plants and sales network.

There’s a clear reason behind this spending push. Small cars, a segment that had slowed down in recent years as buyers moved toward SUVs, are seeing demand bounce back sharply.

Sales in this segment jumped 63% between April and July this year, and Maruti now holds an 83% share of the small car market.

The company ended last year with close to 190,000 pending bookings, simply because it didn’t have enough capacity to keep up.

To fix that gap, it’s now building production lines that can switch between different car models more easily, so it can respond faster when demand shifts.

The company isn’t ignoring other fuel types either. Its electric vehicle, the e Vitara, has done well overseas, with around 41,000 units shipped abroad against roughly 5,648 sold in India so far.

CNG vehicles remain a bigger focus for now, with a target of nearly 900,000 units this year.

Exports are also expected to grow further, building on the roughly 440,000 vehicles shipped out last year.

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