Maruti Suzuki to Set Up Fifth Manufacturing Plant in Gujarat’s Khoraj

Maruti Suzuki India Limited (MSIL) has announced that its fifth car manufacturing plant will be located at the Khoraj industrial estate in Gujarat’s Gandhinagar district. The decision marks a major step in the company’s long-term expansion strategy to meet rising demand in India’s automobile market.

The company informed the stock exchanges that the total investment for the project will be finalised in phases. In a regulatory filing to the BSE, MSIL said, “The cost of land acquisition, development and preparatory activities approved by the board is ₹4,960 crore.”

Maruti Suzuki’s Gujarat Mega-Factory Plan

A ₹35,000-crore project with 1 million annual capacity

Maruti Suzuki had already revealed in January 2024 that it would build a new car manufacturing plant in Gujarat with an annual capacity of one million units at a total investment of around ₹35,000 crore.

This new Khoraj plant is expected to begin operations in 2028-29, playing a crucial role in Maruti Suzuki’s next phase of growth.

Where Maruti Suzuki Currently Builds Cars

Four existing factories across Haryana and Gujarat

At present, Maruti Suzuki has a total annual production capacity of 2.4 million vehicles from its four manufacturing facilities:

• Gurugram, Haryana

• Manesar, Haryana

• Kharkhoda, Haryana

• Hansalpur, Gujarat

The new Khoraj plant will become the company’s fifth manufacturing base, significantly strengthening Gujarat’s role as a key automotive hub.

Maruti Suzuki’s Target: 4 Million Cars by 2030-31

Expansion at Kharkhoda, Hansalpur and Khoraj

MSIL has set an ambitious target of reaching four million units of annual production in India by 2030-31. This growth will be supported by:

• Expansion of the Kharkhoda plant

• Capacity increase at the Hansalpur plant

• The upcoming Khoraj mega-factory

Together, these three projects will help Maruti Suzuki scale up rapidly to meet future demand.

Hansalpur Plant: Production Line and Battery Factory

₹3,200 crore new line and ₹7,300 crore battery plant

Maruti Suzuki is currently building a new production line at its Hansalpur plant with an investment of ₹3,200 crore. This will increase the plant’s capacity from 750,000 units to one million units, and the new line is scheduled to start operations in 2026-27.

In addition, MSIL is also setting up a battery manufacturing plant at Hansalpur with an investment of about ₹7,300 crore, which is expected to support the company’s growing electric and hybrid vehicle ambitions.

Kharkhoda Plant to Reach 1 Million Units

Gradual ramp-up underway

Maruti Suzuki started operations at the Kharkhoda plant last year with an initial annual capacity of 250,000 units. The facility will be expanded in phases to eventually reach a capacity of one million units per year.

Maruti Suzuki’s ₹1.25 Trillion Long-Term Investment Plan

Massive capital expenditure till 2030-31

To prepare for the future of India’s automobile market, MSIL announced in October 2023 that it would invest approximately ₹1.25 trillion in total capital expenditure between 2023-24 and 2030-31.

Out of this, around ₹45,000 crore has been earmarked specifically to increase annual production capacity by two million units during the same period.

Why the Khoraj Plant Matters

Strengthening Gujarat’s role in India’s auto industry

With Hansalpur, the upcoming Khoraj plant, and strong infrastructure support from the Gujarat government, Maruti Suzuki is positioning the state as a major manufacturing base for its future growth.

The Khoraj facility will be a key pillar in helping Maruti Suzuki maintain its leadership as India’s largest carmaker while meeting the rising demand for passenger vehicles in the years ahead.