Gujarat's government made a significant announcement on Saturday, revealing that Maruti Suzuki India Limited plans to invest a massive Rs 35,000 crore. The company will establish its second car manufacturing plant in the state, specifically at Khoraj near Gandhinagar. This move solidifies Gujarat's reputation as a premier automobile manufacturing hub.
Plant Details and Production Capacity
The new facility will boast an impressive annual production capacity of 10 lakh cars once fully operational. Maruti Suzuki's board officially approved this project earlier in the week on Monday. A formal investment letter handover ceremony took place in Gandhinagar on Saturday. Gujarat Chief Minister Bhupendra Patel and MSIL Managing Director Hisashi Takeuchi attended the event.
Manufacturing Units and Timeline
Officials provided specific details about the Khoraj project. It will consist of four separate manufacturing units, each dedicated to production and assembly lines. Every unit will have the capacity to produce 2.5 lakh vehicles per year. Production at the first plant is scheduled to begin from the financial year 2029.
Employment Generation and Economic Impact
This investment promises substantial job creation for the region. The project is expected to generate direct employment for more than 12,000 people. Beyond these direct jobs, the state government anticipates significant indirect employment opportunities. Ancillary and MSME units supporting the plant could create nearly 7.5 lakh indirect jobs over time.
Government Statements and Vision
Chief Minister Bhupendra Patel emphasized the project's alignment with national goals. He stated that it supports Prime Minister Narendra Modi's vision of Make in India, Made for the World. Patel described Gujarat as India's most competitive automobile manufacturing corridor. He credited the state's policy-driven governance, robust infrastructure, and industry-friendly ecosystem for attracting such investments.
Deputy Chief Minister Harsh Sanghavi highlighted the longstanding partnership with Japan. He noted that Japan has been a consistent development partner for Gujarat since the Vibrant Gujarat summit began. Sanghavi assured that the state government would continue providing proactive support for Maruti Suzuki's expansion plans.
Background and Existing Operations
The Memorandum of Understanding for this new plant was signed during the Vibrant Gujarat Summit 2024. Maruti Suzuki already operates a manufacturing facility at Hansalpur in Gujarat. That plant currently produces 7.5 lakh vehicles annually. The company plans to expand its Hansalpur capacity to 10 lakh units by the financial year 2026–27.
This new investment significantly boosts Gujarat's automobile sector. It reinforces the state's position as a key player in India's manufacturing landscape. The project demonstrates confidence in Gujarat's industrial environment and infrastructure capabilities.
