Maruti Suzuki India Limited has entered into a formal agreement with the Government of Gujarat to establish a new manufacturing facility in Khoraj, involving a capital outlay of ₹35,000 crore. This development marks the brand’s fifth major production hub in India and serves as a cornerstone for its ambitious goal to reach a cumulative annual production capacity of 40 lakh units. The agreement was finalized in Gandhinagar with senior state officials and Maruti Suzuki leadership, including Managing Director Hisashi Takeuchi.
Project Scope and Infrastructure
The new facility will be developed on a 1,750-acre plot allocated by the Gujarat Industrial Development Corporation (GIDC). Key highlights of the project include:
- An estimated annual production capacity of 10 lakh (1 million) vehicles.
- The creation of approximately 12,000 direct employment opportunities.
- Strategic proximity to existing industrial hubs in Gujarat.
Strategic Growth Roadmap
The Khoraj plant is essential for Maruti Suzuki to bridge the gap between its current 26-lakh unit capacity and its 40-lakh unit target. The company currently manages production across four other locations, including Hanslapur in Gujarat and three sites in Haryana: Gurugram, Manesar, and Kharkhoda. This capacity hike is intended to serve both the domestic market and growing international export requirements.
Production Performance Context
The investment follows a period of sustained growth for the automaker. In 2025, Maruti Suzuki recorded its highest-ever annual output, manufacturing over 22.55 lakh units. This achievement was supported by strong demand for high-volume models such as the Fronx, Baleno, Swift, Dzire, and Ertiga. The Khoraj facility will provide the necessary infrastructure to maintain this momentum as the brand looks to secure its market leadership through the end of the decade.
