Maruti Suzuki's Rs 35,000 Cr Gujarat Plant to Create 12,000 Jobs

A Landmark Investment in India's Auto Sector

Maruti Suzuki India Limited (MSIL), the country's largest car manufacturer, has announced a significant investment of Rs 35,000 crore to establish a new manufacturing plant in Khoraj, Gujarat. This major development is set to bolster India's automotive sector, with the new facility designed to have an annual production capacity of one million (10 lakh) vehicles. The project underscores the company's confidence in the Indian market and its long-term growth strategy. The investment was formalized in a ceremony in Gandhinagar, where Maruti Suzuki's Managing Director, Hisashi Takeuchi, handed over the investment letter to Gujarat's Chief Minister, Bhupendra Patel.

Official Announcement and Strategic Vision

Chief Minister Bhupendra Patel confirmed the development, highlighting its alignment with Prime Minister Narendra Modi's 'Make in India, Make for the World' vision. He stated that the project would not only generate over 12,000 direct employment opportunities but also act as a catalyst for the growth of ancillary units and Micro, Small, and Medium Enterprises (MSMEs) in the state. This will contribute to creating a robust and self-sustaining auto manufacturing cluster. The Chief Minister also emphasized that Maruti Suzuki's expanded presence deepens the trusted India-Japan partnership and reflects global confidence in Gujarat's policy-driven governance, world-class infrastructure, and industry-friendly ecosystem.

Scale and Production Capacity of the New Facility

The new plant will be constructed on a vast 1,750-acre plot of land provided by the Gujarat Industrial Development Corporation (GIDC) in Khoraj, near Ahmedabad. The facility's planned annual capacity of 10 lakh vehicles is a substantial addition to Maruti Suzuki's overall production capabilities. The development is expected to occur in four distinct phases, with each phase contributing 2.5 lakh vehicles per year to the total target. According to state government officials, production at the new site is anticipated to commence in the fiscal year 2028-29, marking a significant milestone in the company's expansion plans.

Land Acquisition and Existing Gujarat Operations

This investment follows a recent decision by the MSIL board, which approved a Rs 4,960-crore proposal to acquire the land for this expansion at the Khoraj Industrial Estate. This move is a critical component of Maruti Suzuki's broader strategy to enhance its vehicle production capacity. The new Khoraj facility will complement the company's existing operations in Gujarat at Hansalpur, which currently produces 7.5 lakh vehicles annually and is already being scaled up to a capacity of 10 lakh units by FY27. This dual-plant presence will make Gujarat a central hub for a significant portion of Maruti Suzuki's future domestic and export manufacturing.

Key Project Details at a Glance

To provide a clear overview of this mega-project, the key figures are summarized below:

Boosting Regional Economy and Employment

The economic implications of this investment are substantial. The creation of 12,000 direct jobs and an estimated 7.5 lakh indirect jobs will provide a significant boost to the regional economy. The project will stimulate demand for local suppliers, logistics providers, and service industries, fostering a vibrant economic ecosystem around the plant. This influx of capital and employment is expected to improve livelihoods and drive infrastructure development in the surrounding areas, solidifying Gujarat's reputation as one of India's premier automobile hubs and a preferred destination for global investors.

Maruti Suzuki's Record Performance and Future Outlook

The decision to expand comes on the back of a strong performance by the company. In the calendar year 2025, Maruti Suzuki produced over 22.55 lakh vehicles, its highest-ever output. The company also achieved its highest-ever exports in the same year, shipping 3.95 lakh vehicles, which marks a growth of over 21% compared to 2024. This robust demand, both domestically and internationally, necessitates a significant ramp-up in production capacity. The new Gujarat plant is a direct response to this need and is integral to the company's ambitious goal of doubling its total output to 4 million units by 2031.

Alignment with EV and Sustainability Goals

Beyond conventional vehicles, Maruti Suzuki is also focusing on electric mobility. The company plans to invest an additional Rs 3,200 crore to add a fourth production line at its existing Suzuki Motor Gujarat facility, specifically for manufacturing electric vehicles (EVs). This new line is expected to be operational by FY 2026-27. Furthermore, Suzuki Motor Corporation is establishing biogas plants in Gujarat in collaboration with the National Dairy Development Board (NDDB) to produce compressed natural gas from cow dung, highlighting a commitment to environmental sustainability.

Conclusion: A Major Step Towards Future Growth

Maruti Suzuki's Rs 35,000 crore investment in the new Khoraj plant is a transformative step for the company and the Indian automotive industry. It reinforces the company's dominant market position while significantly contributing to Gujarat's industrial growth. As the project moves towards its scheduled commencement in FY 2028-29, it will play a crucial role in meeting future market demand, creating thousands of jobs, and strengthening India's manufacturing prowess on the global stage.