Maruti Suzuki India on Tuesday said its growth remains constrained by capacity limitations despite strong demand, prompting the company to earmark a record capital expenditure of ₹14,000 crore for FY27 to expand production.

The auto maker reported a pending order book of around 190,000 units at the end of FY26, including nearly 130,000 orders in the small car segment. At the analyst call, FY26 for the company was described as one of “two distinct halves”, with domestic sales declining 5.6 per cent in the first half, followed by a 12.3 per cent rebound in the second half, aided by a reduction in GST rates.

Dealer inventory remained tight at about 12 days of stock, underscoring supply constraints amid robust demand.

Chairman R.C. Bhargava said the company is currently operating at full capacity across its facilities. “Our growth is now more or less determined by our ability to add capacity and run,” he said.

To address the constraints, the company plans to add a combined annual production capacity of 500,000 units at its existing plants in Kharkhoda, Haryana, and Hansalpur, Gujarat.

Maruti Suzuki currently operates manufacturing facilities in Gurgaon, Manesar, Kharkhoda and Hansalpur.

Bhargava said the additional capacity would directly support sales growth. “Even today, to reach our sales of around 2.4 million units, we are running virtually at 100 per cent capacity, with a backlog and very low inventories,” he said.

In FY26, the company recorded its highest-ever total sales of 2,422,713 units, comprising domestic sales of 1,974,939 units and exports of 447,774 units.

As part of its long-term expansion strategy, Maruti has also identified land for a fifth manufacturing facility at Sanand, Gujarat. Once fully operational, the plant is expected to have a production capacity of 10 lakh units annually.

Bhargava emphasised that market share is not the company’s primary objective, describing it instead as a by-product of broader market dynamics. When asked about price hikes amid rising commodity prices, he said that a call will be taken at an appropriate time.