Maruti Suzuki capacity hits 26.5 lakh with Kharkhoda-2, 2026

Commercial production begins at Kharkhoda Plant 2

Maruti Suzuki India Ltd (MSIL) has commenced commercial production at the second plant of its Kharkhoda manufacturing facility in Haryana. The company said the unit has an annual production capacity of 250,000 vehicles. The start of commercial production is effective from 18 May 2026. With this addition, the combined installed capacity at the Kharkhoda site increases to 500,000 vehicles per annum.

The development matters because MSIL is India’s largest carmaker and its production planning is closely tracked by investors and suppliers. Kharkhoda is a green-field manufacturing location in Haryana and is a key part of the company’s capacity expansion roadmap. The company disclosed the update through a formal statement.

What changed at the Kharkhoda site

MSIL had started commercial production from the first plant at Kharkhoda in February 2025. That first unit also has a capacity of 250,000 vehicles annually. The second plant now matches that capacity, making the site’s current total 500,000 units per year.

The company also said that, when fully operational, the Kharkhoda facility will be among parent Suzuki’s largest four-wheeler manufacturing locations. At full scale, Kharkhoda is expected to have the capacity to produce 1 million vehicles per annum. The statement positions Kharkhoda as a long-term anchor for MSIL’s India manufacturing footprint.

Company-wide capacity rises to 2.65 million units

With the second Kharkhoda plant coming on stream, MSIL’s overall annual production capacity across its plants stands at 2.65 million vehicles. This total includes facilities in Haryana and Gujarat. MSIL currently operates four manufacturing locations: Gurugram, Manesar, Kharkhoda (all in Haryana), and Hansalpur (in Gujarat).

The company also provided a plant-wise capacity split, which helps track where incremental volumes can come from. Kharkhoda’s share has now moved up with the second plant’s start, while the rest of the network remains anchored by Manesar and Hansalpur.

Capacity split across MSIL’s plants

Models produced at Kharkhoda

MSIL said it currently produces the compact SUV Brezza and the mid-SUV Victoris at the Kharkhoda facility. The mention of models is important because it links capacity additions to segments where demand trends can shift quickly. Compact SUVs and mid-SUVs have been a volume driver in the domestic passenger vehicle market, and stable output in these categories can support dispatches.

While MSIL did not provide production volumes by model in the statement, the capacity ramp at Kharkhoda increases headroom for higher output when required. It also gives flexibility to balance production across facilities.

Timeline: how the expansion has progressed

Next step: board-approved third plant at Kharkhoda

Separately, MSIL has disclosed that its board approved an investment of ₹7,410 crore to set up a third plant at Kharkhoda. The proposed facility is planned with an annual capacity of up to 250,000 vehicles. The company said the project is expected to be operational by 2029 and will be funded through internal resources.

The company has also indicated that with the addition of this third unit, the capacity at the Kharkhoda site is likely to reach 750,000 vehicles per year by 2029. This sits alongside MSIL’s broader capacity expansion narrative and adds clarity on how Kharkhoda could scale over the next few years.

Parallel development: Suzuki Motorcycle India’s Kharkhoda project

The broader Kharkhoda industrial cluster is also seeing investment from Suzuki’s two-wheeler arm. Suzuki Motorcycle India Pvt Ltd (SMIPL) laid the foundation stone for its second manufacturing facility at Kharkhoda. The company said the plant will be developed with an initial investment of close to ₹1,200 crore.

SMIPL’s facility will have an annual production capacity of 7.5 lakh units in the first phase. The project is spread across 100 acres, with the manufacturing unit initially covering 25 acres and an additional 25 acres dedicated to green space. The plant is scheduled to commence operations in 2027, and SMIPL said it will provide employment to around 2,000 people.

Market and industry relevance

Capacity additions are a key operating lever for auto manufacturers because they influence dispatch capability, supplier planning, and model allocation across factories. In MSIL’s case, the increase to 2.65 million units of annual installed capacity provides a clearer base for near-term production planning across four locations. The Kharkhoda addition also strengthens capacity in Haryana, where MSIL already runs major plants in Gurugram and Manesar.

For investors, the immediate fact is the operationalisation of a 250,000-unit plant and the resulting capacity split across the company’s network. The longer runway is visible through the planned full-scale potential of the Kharkhoda site at 1 million vehicles per annum, and the board-approved third plant that is targeted to be operational by 2029.

Conclusion

MSIL’s start of commercial production at Kharkhoda’s second plant marks a defined step in its manufacturing expansion plan, taking total installed capacity to 26.5 lakh vehicles annually. The company has also outlined the next leg of expansion through a third plant at Kharkhoda that is expected to be operational by 2029, while Suzuki’s two-wheeler subsidiary plans to begin operations at its new Kharkhoda facility in 2027.