Maruti Suzuki India Limited has announced a major manufacturing expansion with a new vehicle production plant planned in Gujarat. The announcement was formalised on 19 January 2026 through an investment agreement signed with the Government of Gujarat. This development is significant because it marks Maruti Suzuki’s fifth manufacturing plant in India and represents one of the largest capacity expansion moves by the company in recent years.
Under the agreement, Maruti Suzuki has committed an investment of Rs 35,000 crore for the new facility, which will be located at Khoraj in Gujarat. Land measuring around 1,750 acres has been allotted for the project. Once operational, the plant is expected to have an annual production capacity of up to 10 lakh vehicles, substantially boosting the company’s overall manufacturing capability in the country.
Location and Project Scope
The new manufacturing plant will be developed at Khoraj, strengthening Gujarat’s role as a key automotive manufacturing hub. The scale of land allocation reflects the long-term nature of the project and allows for phased development of production lines, logistics infrastructure, and supporting facilities.
This will be Maruti Suzuki’s second major manufacturing base in Gujarat, complementing its existing operations in the state. By expanding further in Gujarat, the company aims to benefit from established supplier networks, port access for exports, and streamlined logistics.
Manufacturing Capacity and Strategic Expansion
With a planned capacity of 10 lakh units per annum, the Khoraj plant will play a critical role in meeting future demand across passenger vehicle segments. The additional capacity is expected to reduce production constraints and provide greater flexibility in responding to shifts in market demand.
The new plant will also support Maruti Suzuki’s export strategy, as India continues to grow as a global manufacturing base for small cars and compact utility vehicles. This expansion strengthens the company’s ability to balance domestic sales requirements with overseas market commitments.
Investment Significance and Industry Impact
The Rs 35,000 crore investment highlights Maruti Suzuki’s long-term confidence in the Indian automobile market. At a time when manufacturers are balancing regulatory changes, technology transitions, and evolving consumer preferences, the scale of this investment signals a strong commitment to sustained growth.
The project is also expected to have a positive ripple effect across the automotive supply chain. Increased production capacity typically leads to higher demand for components, logistics services, and related industrial activity, benefiting a wide range of ancillary industries.
Employment and Regional Development
The establishment of the new Khoraj plant is expected to generate substantial employment opportunities. Direct jobs will be created during both the construction and operational phases of the facility. In addition, indirect employment is likely to increase through suppliers, transport services, and supporting businesses in and around the region.
This development is expected to contribute to regional economic growth and further strengthen Gujarat’s position as a preferred destination for large-scale automotive manufacturing investments.
What This Means Going Forward
The announcement of the new Gujarat plant marks an important milestone in Maruti Suzuki’s expansion roadmap. By adding a fifth manufacturing facility with high annual capacity, the company is positioning itself to maintain production leadership while improving operational resilience.
As demand for passenger vehicles continues to evolve, the Khoraj plant will play a key role in supporting future growth, enhancing supply stability, and reinforcing India’s importance as a core manufacturing and export base for Maruti Suzuki.
