Automobiles: Maruti Suzuki to invest Rs.35,000 crores in Gujarat plant; create 12k jobs
Virendra Pandit
New Delhi: India’s largest automaker, Maruti Suzuki, will invest Rs. 35,000 crore (USD 3.9 billion) to develop a new manufacturing plant in Gujarat.
Maruti Suzuki India Limited (MSIL) will set it up at Khoraj, Gandhinagar district, with a total annual production capacity of 10 lakh vehicles, the state government announced on Saturday.
The new Gujarat plant will be set up on 1,750 acres of land provided by Gujarat Industrial Development Corporation (GIDC). It will add production capacity of up to 1 million vehicles per annum for the automaker as it expands manufacturing to meet rising demand in India, the world’s third-largest car market, and for exports, according to a statement.
Maruti Suzuki has for years remained India’s largest car manufacturer by a significant margin, consistently holding the top spot with over 40 percent market share due to its focus on affordable, fuel-efficient, and reliable cars with an extensive service network.
Production at the new plant is expected to begin in financial year 2028-29 and will add to the annual production capacity of 2.4 million vehicles for Maruti whose board of directors this week approved an initial investment of Rs. 4,960 crores to acquire land for the plant’s expansion in Gujarat
MSIL, majority-owned by Japan’s Suzuki Motors, has an order backlog of about one and a half months for its entry-level models, its marketing and sales head, Partho Banerjee, said recently.
The company’s sales to domestic dealers rose 37 percent in December 2025 to a record 178,646 units, the media reported.
MSIL Managing Director Hisashi Takeuchi handed over the investment letter to Gujarat Chief Minister Bhupendra Patel in Gandhinagar on Saturday.
In a post on X, CM Patel said the project will generate employment opportunities for over 12,000 people and catalyse the growth of ancillary units and MSMEs in the state, creating a robust auto manufacturing cluster.
“Glad to witness the Investment Letter Handover by Maruti Suzuki India Limited to the Government of Gujarat for setting up a mega car manufacturing facility at Khoraj, with an investment of Rs 35,000 crore,” Patel said.
“The presence of Maruti Suzuki further deepens the trusted India-Japan partnership and reflects global confidence in Gujarat’s policy-driven governance, world-class infrastructure and industry-friendly ecosystem. Gujarat has firmly emerged as one of India’s leading automobile hubs and a preferred destination for global investors,” he added.
The land acquisition is for the expansion of production capacity at Khoraj Industrial Estate from Gujarat Industrial Development Corporation (GIDC), and “the proposed capacity addition is up to 1 million (10 lakh) units,” MSIL said in an exchange filing.
The car manufacturer produced over 22.55 lakh vehicles in 2025, its highest-ever output in a calendar year. It exported 3.95 lakh vehicles in 2025, also its highest ever in any calendar year. This marks a growth of over 21 percent as compared to 2024.
