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 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.
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.
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.
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.
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.
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.
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.