Maruti Suzuki Kharkhoda Plant 2026: ₹35,000 Cr

A new production base in Haryana

Maruti Suzuki has inaugurated its new vehicle manufacturing facility at Kharkhoda in Haryana, adding another production base as it expands manufacturing in India. The plant is positioned as a major capacity addition for India’s passenger vehicle market and as part of the company’s broader manufacturing scale-up. The project has also been framed as a milestone in India-Japan economic ties, with the inauguration involving leadership from both countries.

Joint inauguration and India-Japan partnership context

Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi are set to jointly inaugurate the Kharkhoda manufacturing facility on Wednesday. The event has been described as one of the biggest investments in India’s automobile sector in recent years. During the India-J Joint Economic context referenced in the update, the inauguration was positioned as another marker of the India-Japan partnership.

Where Kharkhoda fits in Maruti’s manufacturing network

Kharkhoda is Maruti Suzuki’s fourth manufacturing facility in India after Gurugram, Manesar and Gujarat. The company has said the plant is expected to significantly boost the country’s passenger vehicle production capacity. Maruti Suzuki also remains India’s largest passenger vehicle manufacturer, accounting for nearly half of all passenger vehicle sales in the country.

Land size, supplier park, and operational footprint

The Kharkhoda facility is spread across nearly 800 acres. It includes an integrated supplier park that the company has linked to strengthening the manufacturing ecosystem and improving operational efficiency. The operational status shared in the updates indicates that two manufacturing units at the site are currently operational.

Capacity ramp-up: from 2.5 lakh to 10 lakh vehicles

The facility has been communicated with multiple capacity milestones. The plant commenced operations in February 2025 with an initial production capacity of 250,000 units, following the virtual laying of its foundation stone by Prime Minister Modi in August 2022. At present, two manufacturing units are operational with a combined installed production capacity of 5 lakh vehicles annually. The company plans to expand the facility’s production capacity to 10 lakh vehicles a year in phases.

Investment and jobs: ₹35,000 crore and 21,000 direct roles

Maruti Suzuki has committed a total investment of ₹35,000 crore for the Kharkhoda project, deployed across phases to reach full scale. The fully developed manufacturing complex is expected to create more than 21,000 direct jobs, with additional employment expected through ancillary industries, logistics providers and component manufacturers. Suzuki Motor Corporation’s chairman Toshihiro Suzuki also said the facility’s expansion from 500,000 units to 1 million units positions it as one of the largest car manufacturing plants.

Energy and greener infrastructure plans

The project includes several energy and logistics elements that the company has linked to sustainability goals. One update states the plant is 100% powered by renewable energy. Maruti Suzuki also plans to commission a biogas plant during FY2026-27, develop an in-house solar power plant with capacity of up to 70 MW as production expands, and build an in-plant railway siding to support greener logistics.

Make in India and exports narrative

According to the company, the Kharkhoda project is a key step in its ‘Make in India, Make for the World’ strategy. Prime Minister Modi highlighted that two-thirds of Suzuki’s vehicles are produced in India and shipped to over 100 nations from New Delhi, underscoring exports as part of the manufacturing narrative attached to Suzuki’s India operations.

Financial snapshot and near-term capex guidance

Maruti Suzuki India reported net sales of ₹50,078.7 crore in the last quarter of FY26 and net profit of ₹3,590.5 crore, down 6.9% year-on-year versus ₹3,857 crore in the year-ago period. Chairman R C Bhargava said the company plans to invest around ₹14,000 crore in FY27, calling it the highest capex in any past year. The capex is expected to go towards continued investments at Kharkhoda and the development of a new manufacturing facility in Gujarat.

Gujarat expansion alongside Kharkhoda: Khoraj plant plan

Separately, Maruti Suzuki has announced a ₹35,000 crore investment to establish a new vehicle manufacturing plant at Khoraj, Gujarat. The Gujarat government said the plant will be established at Khoraj GIDC on 1,750 acres of land made available by GIDC, and has indicated potential employment opportunities for about 12,000 individuals. The planned capacity for the Gujarat facility has been stated at up to 10 lakh vehicles annually, with production scheduled to commence in FY29. The company’s stock also reacted to the Gujarat plant plan, with Maruti Suzuki closing 2% higher at ₹16,182 on January 19, leading gains on the Nifty auto index.

Key facts at a glance

What investors will track next

For Kharkhoda, the key markers are the pace of capacity ramp-up from the current installed level to 10 lakh units annually, and the execution of planned infrastructure such as the biogas unit in FY2026-27 and solar capacity up to 70 MW. For the broader manufacturing roadmap, investors will also watch how FY27 capex of ₹14,000 crore is split between Kharkhoda expansion and development work for the Gujarat plant, which is targeted to start production in FY29.