Maruti Suzuki India Limited has announced a major investment of Rs 35,000 crore to develop a new car manufacturing plant in Khoraj, Gujarat. The announcement was made on Saturday during a formal ceremony held in Gandhinagar, where Maruti Suzuki Managing Director Shriyut Hisashi Takeuchi handed over the investment letter to Gujarat Chief Minister Bhupendra Patel. The new facility is planned as a large-scale manufacturing hub with a total annual production capacity of 10 lakh vehicles.
Boost to Employment and Local Industry
The Gujarat government has highlighted the project’s potential to create wide-ranging economic benefits. According to Chief Minister Bhupendra Patel, the upcoming plant is expected to generate employment opportunities for more than 12,000 people. Beyond direct jobs, the project is also set to support the growth of ancillary units and micro, small and medium enterprises across the state, contributing to the development of a strong and integrated automobile manufacturing cluster.
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Strengthening Gujarat’s Manufacturing Ecosystem
In a post shared on X, the Chief Minister expressed satisfaction over the investment, stating, “Glad to witness the Investment Letter Handover by Maruti Suzuki India Limited to the Government of Gujarat for setting up a mega car manufacturing facility at Khoraj, with an investment of Rs 35,000 crore.” He added that Gujarat continues to reinforce India’s manufacturing base under the vision of Prime Minister Narendra Modi’s ‘Make in India, Make for the World’ initiative.
Patel also noted that Maruti Suzuki’s presence further strengthens the India-Japan partnership and reflects global confidence in Gujarat’s policy-driven governance, robust infrastructure, and industry-friendly environment. He said Gujarat has firmly established itself as one of India’s leading automobile hubs and a preferred destination for global investors.
Large Land Allocation for Long-Term Expansion
The new Maruti Suzuki plant will be developed on 1,750 acres of land allocated by the Gujarat Industrial Development Corporation. The size of the land parcel underlines the long-term nature of the investment and the company’s plans for sustained capacity growth in the state. The Khoraj facility is expected to play a critical role in meeting rising domestic demand and supporting export volumes over the coming years.
Board Approval for Capacity Expansion
Earlier this week, Maruti Suzuki India informed that its board had approved a proposal involving an investment of Rs 4,960 crore for the acquisition of land to expand its manufacturing capacity in Gujarat. The land acquisition is linked specifically to the expansion of production capacity at the Khoraj Industrial Estate and is being carried out through the Gujarat Industrial Development Corporation.
In a regulatory filing, the company stated that the proposed capacity addition at the Khoraj facility could go up to 1 million units. This expansion aligns with Maruti Suzuki’s broader strategy to strengthen its manufacturing footprint and maintain its leadership position in the Indian passenger vehicle market.
Record Production and Export Performance
Maruti Suzuki India continues to report strong operational performance. In the calendar year 2025, the company produced more than 22.55 lakh vehicles, marking its highest-ever annual production. The company also achieved its best export performance during the year, shipping 3.95 lakh vehicles to international markets.
This export figure represents a growth of over 21 percent compared to 2024, reflecting sustained demand for Maruti Suzuki vehicles abroad and the company’s growing role in India’s automobile export landscape. The expansion of manufacturing capacity in Gujarat is expected to further support both domestic sales and exports in the coming years.
Strategic Importance of the Gujarat Plant
With the planned investment at Khoraj, Maruti Suzuki is reinforcing Gujarat’s position as a key pillar in India’s automotive manufacturing sector. The project combines large-scale capacity creation, employment generation, and industrial ecosystem development, making it one of the most significant automobile investments announced in the state in recent years.
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