Maruti Suzuki to Set Up Mega Car Plant in Gujarat

The Gujarat Government and Maruti Suzuki India Limited have exchanged an investment letter for a major new car manufacturing facility in Gujarat. The plant will be set up at Khoraj with an investment of ₹35,000 crore. The project marks a significant boost to India’s automobile sector and reinforces Gujarat’s position as a leading industrial hub.

Why in News?

Maruti Suzuki and the Gujarat Government have formally exchanged an investment letter. The agreement is for setting up a large vehicle manufacturing plant at Khoraj, Gujarat.

About the Khoraj Manufacturing Project

• The new Maruti Suzuki manufacturing plant will come up at Khoraj in Gujarat, spread across around 1,750 acres of land.
• The facility will be developed in phases and will eventually consist of four manufacturing units.
• Each unit will have a production capacity of 2.5 lakh vehicles, taking the total annual output to 10 lakh cars.
• Production from the first unit is expected to begin by the financial year 2029, making it one of the largest automobile projects in India.

Investment and Production Capacity

• The total investment in the Khoraj project is estimated at ₹35,000 crore, making it one of the biggest single investments in India’s automobile manufacturing sector.
• Once fully operational, the plant will significantly enhance Maruti Suzuki’s production capacity.
• This expansion will help the company meet rising domestic demand and strengthen India’s role as a global automobile manufacturing base.

Role of the Gujarat Government

• The investment letter exchange ceremony was held in Gandhinagar in the presence of Bhupendra Patel and Harsh Sanghavi.
• The Gujarat Government welcomed the project, highlighting its commitment to creating an industry friendly environment.
• The state has positioned itself as home to the country’s most competitive automobile manufacturing corridor, supported by strong infrastructure and policy support.

Employment and Economic Impact

• The Khoraj plant is expected to create direct employment for over 12,000 people.
• In addition, it will generate indirect livelihood opportunities for nearly 7.5 lakh individuals through the growth of ancillary industries, supplier networks and MSME clusters around the facility.
• This large employment potential makes the project crucial for regional development and inclusive economic growth.

Boost to MSMEs and Industrial Ecosystem

• The establishment of the plant will encourage the development of auto component suppliers and MSMEs in nearby areas.
• These ancillary units will play a key role in supporting vehicle production and logistics.
• The project is expected to deepen Gujarat’s industrial ecosystem, attract further private investment and enhance skill development in manufacturing-related trades.

Key Summary at a Glance

Question

Q. The new Maruti Suzuki manufacturing plant will be set up at which location?

A. Sanand
B. Khoraj
C. Halol
D. Dahej