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 facility in Khoraj, near Gandhinagar, Gujarat. This bold move strengthens India’s automotive manufacturing ecosystem and signals the company’s belief in the long-term growth of the sector.
Key Details of the Khoraj Facility
- Investment Amount: Rs 35,000 crore
- Location: Khoraj, near Gandhinagar, Gujarat
- Land Allocation: 1,750 acres from Gujarat Industrial Development Corporation (GIDC)
- Annual Production Capacity: 10 lakh cars
- Job Creation: Approximately 12,000 new positions
- Fifth Major Plant: This is Maruti Suzuki’s fifth facility
- Focus: Serving both domestic demand and export potential
Government and Corporate Collaboration
The investment agreement was formalized at a ceremony in Gandhinagar, attended by key dignitaries including Gujarat Chief Minister Bhupendra Patel, Maruti Suzuki India’s Managing Director Hitachi Takeuchi, and other state and company officials. This collaboration highlights Gujarat’s growing importance as an automotive manufacturing hub.
Why Gujarat? Strategic Advantages of the Khoraj Location
Gujarat is renowned for its business-friendly environment, excellent infrastructure, close proximity to ports, and robust supply chain networks. The state’s policies and support, exemplified by the GIDC’s allocation of land, make it an ideal location for the new Maruti Suzuki plant.
Benefits of the Khoraj Facility:
- Convenient access to export markets via ports
- Efficient logistics and supply chain connectivity
- Stable policy environment
- Thriving automotive ecosystem
Boosting Maruti Suzuki’s Manufacturing Capacity
With its new plant in Gujarat, Maruti Suzuki aims to increase its annual production capacity from 26 lakh to 40 lakh vehicles. The Khoraj facility will operate alongside existing plants in Gurugram, Manesar, Kharkhoda (Haryana), and Hansalpur (Gujarat), enabling the company to meet growing domestic and export demands.
Economic Impact: Job Creation and Growth
The Khoraj plant is set to create nearly 12,000 jobs, both directly and indirectly, benefiting the local economy. Additional positive impacts include:
- Generation of employment opportunities
- Growth of ancillary businesses and suppliers
- Increased state revenue through taxes
- Upgrades to local infrastructure
Supporting India’s Manufacturing Vision
This investment aligns with the Make in India and Atmanirbhar Bharat initiatives, strengthening India’s position as a global automotive powerhouse.
Maruti Suzuki’s Record Production Performance
Maruti Suzuki continues to set new benchmarks, having produced over 22.55 lakh units in FY2025—its highest ever. For two consecutive years, the company has surpassed the 20 lakh unit mark, including domestic sales, exports, and OEM supply.
Top-Selling Maruti Suzuki Models
The company’s most popular models, including the Fronx, Baleno, Swift, Dzire, and Ertiga, demonstrate strong and consistent demand across segments.
Expert Insights: The Significance of the Khoraj Plant
Industry experts view the Khoraj plant as a strategic move that will:
- Reinforce Maruti Suzuki’s leadership in India
- Support future production scalability
- Enhance export competitiveness
- Prepare for new automotive technologies, including electric vehicles
Maruti Suzuki’s Reputation: Trust and Dependability
With over 40 years of presence in India, Maruti Suzuki boasts the largest service and dealership network, a loyal customer base, and a reputation for reliability and innovation. The new investment further cements its commitment to India’s automotive future.
What Will the Khoraj Plant Produce?
While specific models for the Khoraj plant have not been announced, experts anticipate a range of passenger vehicles catering to both domestic and international markets, with potential for future-ready platforms such as electric cars.
Conclusion
Maruti Suzuki’s Rs 35,000 crore investment in the Khoraj facility goes beyond expanding production. It signifies confidence in India’s automotive potential, creates thousands of jobs, and positions the company for sustainable growth over the next decade. The plant will play a key role in meeting domestic and export demand as Maruti Suzuki targets an annual production of 40 lakh cars.
FAQs
The new plant is being developed in Khoraj, near Gandhinagar, Gujarat.
Maruti Suzuki is investing Rs 35,000 crore in the new plant.
The facility will be able to manufacture 10 lakh cars per year.
The project is expected to create around 12,000 jobs.
Maruti Suzuki will be able to produce up to 40 lakh vehicles annually.