Maruti Suzuki to invest Rs 35,000 crore to develop a new manufacturing plant in Khoraj, Gujarat

Maruti Suzuki India Limited will invest Rs 35,000 crore to set up a new vehicle manufacturing plant at Khoraj, near Gandhinagar, strengthening Gujarat’s position as one of India’s most important automobile manufacturing hubs.

The proposed facility will be developed on 1,750 acres of land allotted by the Gujarat Industrial Development Corporation. The investment letter handover ceremony was held in Gandhinagar in the presence of Gujarat Chief Minister Bhupendra Patel and Maruti Suzuki India Limited Managing Director Hisashi Takeuchi. Deputy Chief Minister Harsh Sanghavi and senior executives from Maruti Suzuki were also present.

According to the Gujarat government, the Khoraj project will comprise four manufacturing units, each with an annual production capacity of 2.5 lakh vehicles, taking the total planned capacity to 10 lakh cars per year. Production at the first unit is scheduled to commence from the financial year 2029. The board of Maruti Suzuki India Limited approved the investment earlier this week.

The project is expected to generate direct employment for more than 12,000 people. State officials said the development of ancillary units and MSMEs around the plant is likely to create nearly 7.5 lakh indirect employment opportunities over time. The integrated auto cluster that is expected to emerge around Khoraj is also seen as reinforcing Gujarat’s identity as a large-scale automobile and mobility manufacturing corridor.

Chief Minister Bhupendra Patel said the investment aligns with Prime Minister Narendra Modi’s “Make in India, Made for the World” vision and would further strengthen what he described as the country’s most competitive automobile manufacturing corridor. He pointed to Gujarat’s policy-driven governance, robust infrastructure, and industry-oriented development model, as well as the long-standing India–Gujarat–Japan partnership in manufacturing.

Deputy Chief Minister Harsh Sanghavi said Japan has remained a consistent development partner for Gujarat since the inception of the Vibrant Gujarat Summit, adding that the state would continue to extend proactive support to Maruti Suzuki’s expansion plans under the leadership of Chief Minister Patel.

Maruti Suzuki Managing Director Hisashi Takeuchi acknowledged the support extended by the Gujarat government and said the state is emerging as a leader in mobility transformation, from which the company has benefited. He added that Maruti Suzuki aims to contribute actively to the Make in India initiative through its manufacturing presence in Gujarat.

An MoU for the new Khoraj facility was signed during the Vibrant Gujarat Summit 2024. Maruti Suzuki already operates a manufacturing plant at Hansalpur in Gujarat, which currently has an annual production capacity of 7.5 lakh vehicles. This is slated to be expanded to 10 lakh units by the 2026–27 financial year.