Maruti Suzuki approves Rs. 7410 crores investment for a third plant at Kharkhoda
Maruti Suzuki India Limited has announced the approval of a third manufacturing plant at its Kharkhoda facility in Haryana, signalling a major step forward in its capacity expansion strategy. The company’s board cleared the project during a meeting held on March 26, 2025, with the announcement formally disclosed in a regulatory filing.
The proposed plant, which will add a production capacity of 2.5 lakh vehicles annually, is expected to be completed by 2029. Once operational, this new facility will bring the total installed capacity at the Kharkhoda site to 7.5 lakh units per year. The investment for the new plant stands at Rs. 7410 crores and will be funded through internal resources.
Expansion in a Key Manufacturing Hub
Located in the Sonipat district, the Kharkhoda industrial site is fast becoming a central pillar in Maruti Suzuki’s production network. Commercial operations at the first plant on this site commenced only in February 2025, with production focused on the popular Brezza model. Construction of a second plant with a similar capacity is currently underway.
The strategic positioning of the Kharkhoda facility—approximately 19 km from Sonipat and with direct access to the Kundli-Manesar-Palwal (KMP) Expressway—offers strong logistical and infrastructural benefits. Maruti Suzuki has acquired 900 acres at the Industrial Model Township (IMT) in Kharkhoda, underlining its long-term plans in the region.
Supporting Long-Term Growth Goals
This latest development aligns with Maruti Suzuki’s broader roadmap to scale its total production capacity to 4 million units annually by 2030-31. The company has outlined investments exceeding Rs. 50,000 crores for this purpose, including Rs. 45,000 crores earmarked specifically for expanding manufacturing capabilities.
Founded in 1981 as a joint venture between the Indian government and Japan’s Suzuki Motor Corporation, Maruti Suzuki has grown into the country’s largest passenger vehicle manufacturer. Known for its wide portfolio of compact and fuel-efficient cars, the company currently operates three production sites—Gurugram, Manesar and a Suzuki-owned plant in Gujarat.
Tapping into a Growing Market
The Indian automotive sector is witnessing strong growth momentum, with market projections estimating a size of USD 137.06 billion in 2025, potentially rising to USD 203.25 billion by 2030 at a CAGR of 8.2%. Factors such as increasing urbanisation, a rise in disposable incomes, and government-led initiatives are fuelling this growth.
Maruti Suzuki’s expansion comes as the company seeks to capture a larger share of this growing market and strengthen its export potential. The automaker is aiming to reclaim a 50% market share in India, a target that hinges heavily on expanded production and quicker turnaround across its vehicle portfolio.
The official statement regarding the new plant was signed by Sanjeev Grover, Executive Officer and Company Secretary of Maruti Suzuki India Limited.
