On Tuesday, March 24, 2026, Maruti Suzuki India Limited (MSIL) announced that its board has approved a massive investment of ₹10,189 crore to set up the first phase of its fifth manufacturing facility at Khoraj Industrial Estate, Gujarat.
This announcement follows the company’s earlier move in January 2026 to secure 1,750 acres of land at the same location for ₹4,960 crore, bringing the total committed capital for this new site to over ₹15,000 crore.
The Khoraj Facility: Strategic Blueprint
The Khoraj plant is designed to be a modular “Mega-Site,” allowing Maruti to scale production in phases as it targets a total national capacity of 4 million units by 2030.
- Phase I Capacity: 250,000 vehicles per annum.
- Timeline: Expected to be commissioned by 2029, subject to market conditions.
- Funding: The entire ₹10,189 crore will be funded through internal accruals, reflecting the company’s strong cash position.
- Infrastructure: The current investment includes “common infrastructure” (utilities, paint shops, and testing tracks) that will support an eventual total of four assembly lines at this site.
Maruti’s 2026 Capacity Crisis
The decision to fast-track the Khoraj investment comes as Maruti Suzuki faces severe supply constraints.
- 100% Utilization: As of March 2026, Maruti’s existing plants in Gurugram, Manesar, Hansalpur, and Kharkhoda are operating at full capacity (~2.4 to 2.6 million units).
- Inventory Strain: Dealer inventory levels have dropped to just 12 days, significantly below the healthy industry benchmark of 30 days.
- Pending Orders: The company is currently sitting on a backlog of approximately 200,000 vehicles, including high demand for the newly launched eVitara and SUV models like the Fronx and Brezza.
The Multi-Plant Roadmap (2026–2030)
Maruti is currently managing three major expansion fronts simultaneously to bridge the supply gap:
- Hansalpur (Gujarat): A dedicated EV production line (Line D) is set to go live in July 2026, adding 250,000 units specifically for the eVitara and Toyota Ebella.
- Kharkhoda (Haryana): The second production line at this new “mega-site” is scheduled to begin operations in April/May 2026.
- Khoraj (Gujarat): This newly approved fifth plant will eventually add 1 million units of capacity, making Gujarat the undisputed “Detroit of the East” for the Suzuki group.
Financial Pulse
Despite the heavy CAPEX, Maruti reported a strong Q3 FY26 (ended December 2025):
- Net Profit: ₹3,879.1 crore (up 4.08% YoY).
- Revenue: ₹49,904.1 crore (up 28.74% YoY).
- Exports: Exceeded the full-year target of 400,000 units in just 11 months, driven by demand in Europe, Africa, and the Middle East.
“Our existing capacity is fully utilized. This investment at Khoraj is essential to cater to the sustained growth in domestic demand and our aggressive export targets.” — Maruti Suzuki Board Statement.