Maruti Suzuki Ltd., the biggest automobile manufacturer in India, stated on Wednesday that it will spend Rs 7,410 crore to construct a third facility in Kharkhoda, Haryana, in order to increase production capacity and satisfy growing export and domestic demand.

The construction of a third factory in Kharkhoda, which will be able to produce 2.5 lakh cars annually, was authorized by the company’s Board of Directors at a meeting on Wednesday, according to a stock market filing from Maruti Suzuki.

By 2029, the facility is anticipated to begin production, increasing Kharkhoda’s annual capacity to 7.5 lakh automobiles.

Internal accruals will be used to finance the investment. at February of this year, the first factory at the Kharkhoda plant, a greenfield project, began producing the small SUV Brezza for commercial use.

As “the business environment has changed due to declining market share in India” and the expanding electric vehicle category, Suzuki Motor Corporation of Japan, the parent company of Maruti Suzuki India, released a new mid-term plan last month that included a “rethink” in its strategy.

India has been designated as the company’s “most important market” in its updated mid-term strategy for 2025–2030. In order to regain 50% of the Indian market and utilize the nation as a center for international exports, Maruti Suzuki wants to build a manufacturing facility capable of producing 4 million vehicles a year.

Starting with the e-Vitara, the automaker intends to increase the number of EV models in its lineup. By FY30, it hopes to introduce four additional models in a market where competitors like Tata Motors and Mahindra & Mahindra already have a diverse range of EVs in India.

For the October–December quarter of the current fiscal year, Maruti Suzuki recorded a 16 percent rise in net profit to Rs 3,727 crore, up from Rs 3,206.8 crore in the same period the previous year.

Due to increased sales, the company’s operating revenue increased 15.7% year over year to Rs 38,764.3 crore from Rs 33,512.8 crore in the same quarter last year.