Maruti Suzuki's Rs 35,000 Crore Gujarat Plant to Add 1 Million Units

Maruti Suzuki Announces Major Expansion in Gujarat

Maruti Suzuki India Limited (MSIL), the country's largest passenger vehicle manufacturer, has announced a landmark investment of Rs 35,000 crore to establish a new state-of-the-art manufacturing facility in Khoraj, Gujarat. This strategic move is set to significantly boost the company's production capabilities, with the new plant designed to have an annual output of one million vehicles. The project underscores Maruti Suzuki's confidence in the long-term growth trajectory of the Indian automotive market and its commitment to the 'Make in India' initiative.

The formal announcement was made during an investment letter handover ceremony in Gandhinagar. Maruti Suzuki's Managing Director, Hisashi Takeuchi, presented the official letter to Gujarat's Chief Minister, Bhupendra Patel, marking a new chapter in the company's expansion journey within the state.

A Boost to Gujarat's Automotive Ecosystem

Chief Minister Bhupendra Patel highlighted the project's economic significance, stating that the new plant will create over 12,000 direct employment opportunities. Beyond direct jobs, the investment is expected to act as a powerful catalyst for the local economy, fostering the growth of ancillary units and Micro, Small, and Medium Enterprises (MSMEs). This will contribute to the development of a robust and self-sufficient auto manufacturing cluster in the region.

The Chief Minister also noted that this expansion deepens the trusted India-Japan partnership and reflects global investor confidence in Gujarat's stable policy environment, world-class infrastructure, and industry-friendly ecosystem. The state has firmly established itself as a leading automotive hub in India, and this project further solidifies that position.

Project Scale and Strategic Location

The new facility will be constructed on a sprawling 1,750-acre plot of land allotted by the Gujarat Industrial Development Corporation (GIDC) in Khoraj, near Ahmedabad. The planned annual capacity of 10 lakh vehicles represents a substantial addition to Maruti Suzuki's existing manufacturing footprint. The development will be executed in phases, with each phase contributing 2.5 lakh units to the total capacity. According to state government officials, production at the new site is slated to commence in the fiscal year 2028-29.

This investment follows a recent decision by the MSIL board to approve a Rs 4,960-crore proposal for the acquisition of this land. The new Khoraj facility will operate in tandem with the company's existing plant in Hansalpur, Gujarat, which is also being scaled up to a capacity of 10 lakh units by FY27. Together, these plants will make Gujarat a central pillar of Maruti Suzuki's domestic and export manufacturing strategy.

Key Project Details at a Glance

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

Driving Future Growth and Meeting Demand

Maruti Suzuki's decision to expand comes on the heels of a record-breaking performance. In the 2025 calendar year, the company produced over 22.55 lakh vehicles, its highest-ever annual output. Exports also reached an all-time high of 3.95 lakh vehicles in the same period, marking a growth of over 21% compared to 2024.

This strong performance, driven by both domestic and international demand, has created the need for a significant increase in production capacity. The new Gujarat plant is a direct response to this market reality and is a critical component of the company's ambitious vision to nearly double its total output to 4 million units by 2031.

Economic Impact and Market Position

The economic implications of this investment are far-reaching. The creation of thousands of direct and indirect jobs will provide a substantial boost to the regional economy. The project will stimulate demand for local suppliers, logistics firms, 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.

For Maruti Suzuki, this expansion solidifies its dominant position in the Indian market. By proactively building capacity, the company is preparing to meet future consumer demand, navigate increasing competition, and strengthen its export operations. The investment also aligns with its strategy to enhance operational efficiency and cater to evolving consumer preferences, including the shift towards cleaner and more technologically advanced vehicles.

Conclusion

Maruti Suzuki's Rs 35,000 crore investment in the new Khoraj plant is a transformative development for both the company and the Indian automotive industry. It reinforces the company's market leadership while significantly contributing to Gujarat's industrial growth. As the project progresses towards its scheduled commencement in FY 2028-29, it will play a pivotal role in shaping India's manufacturing landscape and meeting the automotive needs of the future.