Maruti Suzuki India (MSIL) has officially locked in the location for its next mega-manufacturing hub, marking a defining moment in its “Maruti Suzuki 3.0” strategy. On January 12, 2026, the company’s board approved the acquisition of land at the Khoraj Industrial Estate in Gujarat’s Gandhinagar district.
This plant will serve as the cornerstone for Maruti’s goal to reach a total production capacity of 4 million units by 2030-31.
The Khoraj Plant: Key Financials & Timeline
The Khoraj facility is designed to be a “Greenfield” site, meaning it will be built from scratch with the latest automated and sustainable manufacturing technologies.
- Initial Land Investment: ₹4,960 crore (approved for land acquisition from GIDC and preparatory work).
- Total Projected Investment: Approximately ₹35,000 crore (to be finalized in phases).
- Production Capacity: 1 million units per year at full scale.
- Operational Kick-off: Expected in FY 2028-29.
The Road to 4 Million Units (Vision 2030)
Maruti Suzuki is currently operating at nearly 100% utilization of its existing 2.6 million unit technical capability. To bridge the gap to 4 million, the company is executing a multi-state expansion:
| Facility | Current/Initial Capacity | Target Capacity | Focus Area |
| Hansalpur (Gujarat) | 750,000 units | 1 Million units | EV Production (e-Vitara) |
| Kharkhoda (Haryana) | 250,000 units | 1 Million units | Hybrid & ICE SUVs (Brezza) |
| Khoraj (Gujarat) | New Project | 1 Million units | Future-ready Flex-fuel/EVs |
| Manesar & Gurugram | ~1.4 Million units | Optimized | Core domestic models |
Gujarat: The Global Export Hub
With the Khoraj plant, Gujarat will become Maruti’s largest manufacturing base, capable of producing 2 million units annually. This is strategic for two reasons:
- Port Connectivity: Proximity to Mundra and Pipavav ports supports Maruti’s goal of exporting 750,000–800,000 units by 2030.
- EV Ecosystem: The ₹7,300 crore battery plant and the new e-Vitara production line at Hansalpur (inaugurated by PM Modi in August 2025) create a specialized hub for electric mobility.
Strategic Rationale: Why Khoraj?
The Khoraj Industrial Estate (Sanand-III) offers a “Japanese Industrial Township” environment with dedicated infrastructure:
- Connectivity: Located near NH-947 and SH-17, providing seamless links to the Ahmedabad industrial belt.
- Logistics: Just 30 km from Ahmedabad and 60 km from Gandhinagar, ensuring easy access to a skilled workforce and vendor parks.
- Power & Utilities: Dedicated 220 KV and 66 KV substations are already planned to support heavy industrial loads.