Maruti Suzuki Invests Rs 35,000 Crore for its 5th Plant in India

With the new plant, Maruti’s total production capacity will increase to 40 lakh units per annum With robust demand across domestic and international markets, Maruti Suzuki could soon outstrip its current production capacity of 26 lakh units per annum. To meet the rising demand, Maruti is building its 5th plant in India. The new plant coming up in Gujarat will have a production capacity of 10 lakh cars per annum. Let’s check out more details on these developments. Maruti Suzuki’s 5th plant Maruti has submitted an investment letter to the Gujarat government, marking the initiation of the process of building the new plant. The event was graced by the presence of Gujarat Chief Minister Bhupendra Patel and Maruti Suzuki Managing Director Hisashi Takeuchi. Also present were Harsh Sanghvi (Deputy Chief Minister) and Sunil Kakkar (Maruti Suzuki Whole Time Director and Executive Committee Member). Maruti’s 5th plant is coming up in Khoraj, Gujarat. This will be Maruti’s second plant in Gujarat, with the first located in Hansalpur. Both plants are strategically located near Ahmedabad, although the upcoming plant in Khoraj is much closer to the state’s capital. The land for the new plant, around 1,750 acres, will be provided by the Gujarat Industrial Development Corporation (GIDC). Maruti’s 5th plant will have four units, each with a capacity of 2.5 lakh units per annum. Production from the first unit is planned to commence from the 2029 financial year. When all four units will be operational, the overall production capacity will be 10 lakh units per annum. The new plant is expected to create around 12,000 direct employment opportunities. Indirect employment opportunities are expected at around 7.5 lakh, spread across MSME clusters and ancillary units in the surrounding areas. Growing demand for Maruti cars With five plants, Maruti is looking at a production capacity of around 40 lakh units per annum. The current capacity with the four plants is around 26 lakh units per annum. In addition to the Hansalpur facility in Gujarat, Maruti operates three plants in Haryana. These are located in Gurugram, Manesar and Kharkhoda. With its strong focus on sub-4-meter cars and SUVs, Maruti has a big lead over other carmakers in terms of overall volumes. In the domestic market, Maruti currently has a market share of around 40%. Sales have been even more spectacular in recent months after the GST reforms were introduced. Lower GST rates have significantly benefitted the sub-4-meter segment. In CY2025, Maruti sold more than 22.55 lakh cars, its highest ever in a calendar year. Top contributors were Fronx, Baleno, Swift, Dzire and Ertiga. Maruti is also witnessing significant demand across global markets. From 2021 to 2025, Maruti has maintained its position as the No. 1 PV exporter from India.