Khoraj facility to anchor next phase of capacity expansion; land acquisition approved at ₹4,960 crore
Maruti Suzuki India on Monday confirmed that its upcoming car manufacturing plant, the company’s fifth in the country, will be located at the Khoraj industrial estate in Gujarat’s Gandhinagar district, marking a key step in its long-term capacity expansion strategy.
In a regulatory filing to the BSE, the country’s largest carmaker said the board has approved ₹4,960 crore towards land acquisition, development and preparatory activities for the new facility. The total investment for the plant, along with phased installation of manufacturing capacity, will be finalised separately by the board.
Maruti Suzuki had earlier, in January 2024, announced plans to set up a new manufacturing unit in Gujarat with an annual production capacity of one million vehicles. The proposed investment for the full facility was estimated at around ₹35,000 crore, with commercial operations expected to begin in FY29.
Capacity expansion roadmap
At present, Maruti Suzuki operates four manufacturing plants with a combined annual capacity of 2.4 million units. These facilities are located at Gurugram, Manesar and Kharkhoda in Haryana, and Hansalpur in Gujarat. The new Khoraj plant will further strengthen the company’s manufacturing footprint in the state.
The automaker has outlined a target of achieving around 4 million units of annual production capacity in India by FY31. This milestone will be supported by multiple parallel expansions, including the scaling up of the Kharkhoda plant, capacity enhancement at Hansalpur, and commissioning of the new Khoraj facility.
Maruti Suzuki is currently adding a new production line at its Hansalpur plant with an investment of ₹3,200 crore, which will raise capacity there from 750,000 units to one million units by FY27. Separately, the company is also setting up a battery manufacturing plant at Hansalpur with an investment of about ₹7,300 crore.
In October 2023, Maruti Suzuki announced a cumulative capital expenditure plan of nearly ₹1.25 trillion between FY24 and FY31, underlining its intent to stay ahead of demand growth in India’s passenger vehicle market.
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