New Delhi - Dec 01, 2025 (UTC) - India’s largest automobile manufacturer, Maruti Suzuki India Limited (MSIL), today announced the successful completion of its amalgamation with wholly-owned subsidiary Suzuki Motor Gujarat Private Limited (SMG), marking a significant milestone in the company’s operational restructuring.
Merger Details and Timeline
The National Company Law Tribunal’s sanctioned scheme became effective from December 1, 2025, following a comprehensive regulatory approval process. The appointed date under the scheme is April 1, 2025, which serves as the effective date for the transfer of all assets and liabilities.
The merger process began with the Board of Directors’ resolution on October 29, 2024, followed by shareholder approval in late April 2025, and has now been formally completed with the filing of the certified copy of the NCLT order with the Registrar of Companies, Delhi.
Strategic Rationale
The consolidation brings together two key entities in Suzuki’s Indian operations. Previously, both companies operated in the production and sales of automobiles and parts in India, with SMG manufacturing vehicles at its Gujarat facility and supplying them to MSIL, which then distributed products through its extensive dealer network.
The amalgamation aims to improve operational efficiency, speed up decision-making, reduce administrative costs, and make effective use of management resources by consolidating businesses into one company.
Financial Impact
The merger has resulted in an increase in the authorized share capital of Maruti Suzuki by ₹15,000 crore. The company’s existing authorized capital stood at ₹1,875 crore with a paid-up capital of ₹157.20 crore as of September 30, 2024.
Since SMG was fully owned by MSIL, no new shares were issued, and the subsidiary will be dissolved without winding up.
Operational Integration
All assets, liabilities, contracts, employees, and intellectual property of SMG have transferred to MSIL as part of this absorption-type amalgamation. The merger brings SMG’s strategic Gujarat plant in Hansalpur—responsible for manufacturing popular models including the Swift and Baleno—directly under MSIL’s operational umbrella.
The company has confirmed that post-merger, MSIL will continue operations without changes to its name, address, business activities, or leadership structure. The integration is expected to strengthen supply chain coordination and operational synergy across the organization.
Regulatory Approval
The merger scheme was filed under Sections 230–232 of the Companies Act, 2013. The NCLT Principal Bench, comprising President Justice Ramalingam Sudhakar and Technical Member Ravindra Chaturvedi, approved the scheme after confirming compliance with all statutory requirements.
Notices were issued to relevant statutory authorities including the Regional Directors, Official Liquidator, and Income Tax Department. The tribunal directed MSIL to preserve statutory records and comply with fees on the revised authorized capital.
Company Background
Maruti Suzuki India Limited, originally incorporated in 1981 as Maruti Udyog Limited, remains India’s largest car manufacturer and distributor. Suzuki Motor Corporation holds a 58.19% stake in MSIL, with Life Insurance Corporation of India holding 2.47%.
The company recently achieved record sales in January 2025, with 212,251 units sold, including the highest-ever monthly domestic sales of 177,688 units, demonstrating its continued market dominance.
Market Response
Maruti Suzuki shares were trading 0.15% higher at ₹15,917.25 apiece on BSE following the merger announcement, reflecting positive investor sentiment about the consolidation.
Looking Ahead
The successful completion of this amalgamation positions Maruti Suzuki to further strengthen its competitive position in India’s rapidly growing automotive sector. The simplified corporate structure is expected to enhance the company’s ability to respond to market demands and optimize resource allocation across its operations.
Industry analysts view this consolidation as a strategic move that will enable faster decision-making and improved operational efficiency, potentially providing Maruti Suzuki with a stronger foundation for future growth in the highly competitive Indian automobile market.
This merger represents one of the significant corporate restructuring exercises in India’s automotive industry in 2025, streamlining operations for the country’s market leader as it continues to navigate an evolving automotive landscape.
