Ahmedabad: Strengthening the state’s position as a key automobile manufacturing hub, Gujarat govt on Saturday announced that Maruti Suzuki India Limited (MSIL) will invest Rs 35,000 crore to set up its second car manufacturing plant at Khoraj near Gandhinagar. The plant will have an eventual annual production capacity of 10 lakh cars. The project is expected to generate direct employment for over 12,000 people, besides creating substantial indirect employment through ancillary and MSME units in the region, according to state govt officials.MSIL’s board gave approval for the matter earlier this week on Monday. The investment letter handover ceremony was held in Gandhinagar in the presence of Gujarat chief minister Bhupendra Patel and MSIL MD Hisashi Takeuchi on Saturday. According to officials, the Khoraj project will comprise four manufacturing units (production and assembly lines), each with a capacity of 2.5 lakh vehicles per year. Production at the first plant is scheduled to commence from FY 2029. The integrated auto cluster that is expected to emerge around the facility is projected to create nearly 7.5 lakh indirect employment opportunities over time. CM Patel said, “The project aligns with Prime Minister Narendra Modi’s vision of Make in India, Made for the World, and will further strengthen what he described as India’s most competitive automobile manufacturing corridor. Gujarat’s policy-driven governance, robust infrastructure, industry-friendly ecosystem, and the long-standing India-Gujarat-Japan partnership in manufacturing will go a long way here.” DyCM Harsh Sanghavi said, “Japan has remained a consistent development partner for Gujarat since the inception of the Vibrant Gujarat summit,” adding that the state would continue to extend proactive support to Maruti Suzuki’s expansion plans. An MoU for the new plant was signed during the Vibrant Gujarat Summit 2024. Maruti Suzuki already operates a manufacturing facility at Hansalpur in Gujarat, which currently has a production capacity of 7.5 lakh vehicles annually. This is slated to be expanded to 10 lakh units by FY 2026–27.
