Maruti Suzuki India Ltd. has announced a significant investment of ₹925 crore to expand its solar power installations from the current 79 MWp to 319 MWp by fiscal year 2030–31. This move supports the automaker’s goal of meeting 85 percent of its electricity needs from renewable sources by 2031.

Over the past year, Maruti Suzuki has already boosted its rooftop and ground-mounted solar capacity by 30 MWp. In March 2025, it commissioned a 20 MWp plant at its Kharkhoda (Haryana) facility and added another 10 MWp at its Manesar (Haryana) plant. Together with earlier installations at Gurgaon, Manesar, and other sites, the company’s total capacity now stands at 79 MWp.

With the newly announced ₹925 crore capital outlay, Maruti plans to develop an additional 240 MWp of solar projects. These will include:

• Open-access procurements and renewable-energy certificates (RECs) to fill any remaining gap, ensuring that 85 percent of the company’s electricity consumption is from green sources.
• Ground-mounted solar farms adjacent to existing manufacturing campuses in Haryana, Gujarat, and Rajasthan.
• Rooftop installations on new buildings at evolving production sites.

Maruti Suzuki’s parent company, Suzuki Motor Corporation (SMC), has set an “Environment Vision 2050” to achieve net-zero CO₂ emissions throughout its operations. In India, the automaker’s timing dovetails with national and state-level incentives for solar energy, including capital subsidies and open-access regulations.

As grid tariffs rise and environmental regulations tighten, locking in low-cost solar power helps Maruti hedge against future electricity price volatility. By generating an estimated 400 million kWh a year from 319 MWp, the company expects to offset roughly 200,000 tonnes of CO₂ annually—roughly equivalent to removing 40,000 passenger cars from the road.

Financial and Operational Benefits

Investing ₹925 crore up front will enable Maruti to:

1. Reduce Energy Costs – Solar tariffs (around ₹2.50–3.00/kWh) are lower than industrial grid rates, saving hundreds of crores over the plant lifetimes.
2. Improve Profit Margins – Stable, predictable electricity costs boost manufacturing competitiveness as raw-material and labor costs rise.
3. Qualify for Incentives – Capital subsidies, accelerated depreciation, and state rebates on solar projects improve project IRRs by 4–6 percent.
4. Meet ESG Targets – A higher share of renewable power strengthens Maruti’s Environmental, Social, and Governance (ESG) profile, attracting sustainability‐focused investors.

Analysts note that a 319 MWp portfolio will cover about 60–70 percent of Maruti’s total electricity consumption by 2031, assuming annual plant load factors of 18 percent.

After the announcement on June 4 2025, Maruti Suzuki shares rose 0.9 percent to ₹12,236.85 on the BSE. Investors view the ₹925 crore solar investment as a hedge against volatile power costs and regulatory risks. Brokerages reaffirm “Buy” ratings, citing improved margin visibility and ESG credentials.