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Maruti Suzuki to Invest ₹35,000 Crore in New Gujarat Plant, Boosting India’s Auto Manufacturing Capacity

Prime Highlight :

  • Maruti Suzuki will invest ₹35,000 crore to set up a large-scale vehicle manufacturing plant at Khoraj in Gujarat, reinforcing India’s automobile manufacturing corridor.
  • The new facility will significantly boost employment and support the Make in India initiative by strengthening local production and supplier ecosystems.

Key Facts :

  • The plant will be developed on 1,750 acres and will include four manufacturing units with a combined annual capacity of 10 lakh vehicles.
  • The project is expected to generate over 12,000 direct jobs, while indirect employment could exceed 7.5 lakh opportunities through allied industries and MSMEs.

Background :

Maruti Suzuki India Limited has announced a major investment of ₹35,000 crore to establish a new vehicle manufacturing plant at Khoraj in Gujarat. The project will be developed on 1,750 acres of land allotted by the Gujarat Industrial Development Corporation (GIDC) and is expected to strengthen India’s automobile manufacturing capacity significantly.

The Investment Letter Hand Over Ceremony took place in Gandhinagar in the presence of Gujarat Chief Minister Bhupendra Patel and Maruti Suzuki Managing Director Hisashi Takeuchi. Deputy Chief Minister Harsh Sanghavi and senior officials from both the state government and Maruti Suzuki also attended the event.

Chief Minister Patel said the project is not just a new automobile plant but a key step towards reinforcing India’s most competitive automobile manufacturing corridor. He highlighted Gujarat’s strong industrial policies, robust infrastructure, and long-standing partnership with Japan under the leadership of Prime Minister Narendra Modi. He added that Gujarat has evolved into a policy-driven state with a development approach aligned to industry needs.

The new plant is expected to generate direct employment for more than 12,000 people. In addition, the growth of supplier and MSME units around the facility could create over 7.5 lakh indirect jobs and further strengthen Gujarat’s role as a major automobile hub.

Under the project, Maruti Suzuki will develop four manufacturing units, each with an annual capacity of 2.5 lakh cars, taking the total capacity to 10 lakh vehicles per year. The company plans to start production at the first plant in the financial year 2029.

Maruti Suzuki MD Hisashi Takeuchi said Gujarat is emerging as a leader in mobility transformation and that the company looks forward to contributing further to the Make in India initiative through its expanding manufacturing presence in the state.

The project follows an MoU signed during the Vibrant Summit 2024 and builds on Maruti Suzuki’s existing plant at Hansalpur, which is set to reach a production capacity of 10 lakh cars by 2026–27.

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