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Passenger car major Maruti Suzuki India Ltd on Wednesday decided to expand its production capacity by one million units as its current capacity is fully utilised.

The decision to expand the capacity has been approved by the company board at its meeting while approving the audited accounts for the year 2022-23.

According to a regulatory filing, Maruti Suzuki said it has a total production capacity of 13 million units in Manesar and Gurugram.

In addition, the Company is supplied vehicles by Suzuki Motor Gujarat Private Limited (SMG) under the Contract Manufacturing Agreement.

While the investment needed for setting up of one million units production capacity will be decided by the Board later, the amount will be funded with internal accruals.

As to the rationale for expansion, the company said it is to meet the market demand including exports, the company added.

Meanwhile, Maruti Suzuki closed FY23 with a net sales of Rs 1,125,008 million compared with Rs 837,981 million in FY22.

The company recorded an Operating Profit of Rs 81,844 million in FY23 as against Rs 29,147 million in FY2021-22.

Maruti Suzuki was able to better its operating profit on account of higher sales volume, improved realisation from the market, and favourable forex movement.

The net profit for FY23 rose to Rs 80,492 million from Rs 37,663 million in FY22.

The Board of Directors recommended highest-ever dividend of Rs 90 per share (face value of Rs 5 per share) compared to Rs 60 per share in FY 2021-22.

During the period under review, Maruti Suzuki sold a total of 1,966,164 vehicles despite missing production of about 170,000 units due to shortage of electronic components.

This translated to a growth of 19 per cent over FY2021-22 sales volume of 1,652,653 vehicles. Sales volume in the year comprised of 1,706,831 units in the domestic market and highest-ever exports of 259,333 units, the company said.