Maruti Suzuki India Ltd will set up a new vehicle manufacturing plant on 1,750 acres of land in Gujarat with an investment of ₹35,000 crore, creating direct employment for around 12,000 people, the Gujarat government said on Saturday.
The proposed facility at Khoraj, near Ahmedabad, will have an annual production capacity of 10 lakh vehicles and is expected to significantly expand the state’s automobile manufacturing ecosystem.
An investment letter handover ceremony for the project was held in Gandhinagar in the presence of Chief Minister Bhupendra Patel and Maruti Suzuki India Managing Director Hisashi Takeuchi, marking a key step towards implementation of the project.
Deputy Chief Minister Harsh Sanghavi also attended the event. In a regulatory filing to the BSE on January 12, Maruti Suzuki India Ltd had said its board has approved a ₹4,960‑crore investment to acquire land at the Khoraj Industrial Estate in Gujarat as part of its plan to expand vehicle production capacity by up to 10 lakh units annually.
The plant will be developed in four phases, with each unit having a capacity of 2.5 lakh vehicles per year. Maruti Suzuki plans to commence production from the first plant in FY29, according to the state government.
Apart from direct jobs, the project is expected to spur the development of ancillary and MSME units in the surrounding region, potentially generating more than 7.5 lakh indirect employment opportunities, officials said.
The formation of an integrated auto cluster is expected to further strengthen Gujarat’s position as a major automobile hub.
Maruti Suzuki’s existing plant at Hansalpur currently has a production capacity of 7.5 lakh vehicles per annum, which the company plans to scale up to 10 lakh units by FY27.
Once the Khoraj facility becomes operational, Gujarat will account for a substantial share of Maruti Suzuki’s domestic manufacturing capacity. The company has already invested ₹21,000 crore in its car plant at Hansalpur and is in the process to invest an additional ₹3,200 crore in setting up the fourth line in the Gujarat facility.
The total existing car manufacturing capacity of Maruti Suzuki is around 24 lakh units per annum with manufacturing facilities spread across Gurugram, Manesar, Kharkhoda and Hansalpur. This includes the units produced at erstwhile Suzuki Motor Gujarat Private Limited which has been amalgamated with the Company.