India, Jan. 12 -- Maruti Suzuki India Ltd. has approved a plan to acquire land in Gujarat, as the nation's largest carmaker seeks to expand its annual production capacity by up to 10 lakh units (1 million) to meet rising demand.

The board of the New Delhi-based carmaker cleared an investment of Rs.4,960 crore for land acquisition, development, and preparatory activities at Khoraj Industrial Estate, according to an exchange filing Monday. The land will be acquired from the Gujarat Industrial Development Corporation.

The expansion comes as Maruti's existing production capacity of approximately 24 lakh units per year across its car plants in Gurugram, Manesar, Kharkhoda, and Hansalpur is "fully utilised", according to the filing. The compa...