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Company News: Companies Analysis, Updates & Insights | The HinduBusinessLine

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Maruti Suzuki commences second factory at Kharkhoda with 2.5-lakh units
2026-05-18 · via Company News: Companies Analysis, Updates & Insights | The HinduBusinessLine
(file photo) Maruti Suzuki’s overall annual production capacity across its facilities in Gurugram, Manesar and Kharkhoda in Haryana, and Hansalpur in Gujarat is now 26.5 lakh units

(file photo) Maruti Suzuki’s overall annual production capacity across its facilities in Gurugram, Manesar and Kharkhoda in Haryana, and Hansalpur in Gujarat is now 26.5 lakh units | Photo Credit: REUTERS/ANUSHREE FADNAVIS

Maruti Suzuki India Limited (MSIL) on Monday said it has commenced commercial production at the second plant of its Kharkhoda manufacturing facility in Haryana that will add production capacity of another 2.5 lakh units per annum to its total capacity.

“This second plant has an annual production capacity of 2.5 lakh units, taking the total capacity at Kharkhoda to five-lakh units. Maruti Suzuki’s overall annual production capacity across its facilities in Gurugram, Manesar and Kharkhoda in Haryana, and Hansalpur in Gujarat is now 26.5 lakh units,” MSIL said.

Once fully operational, the Kharkhoda facility will be among Suzuki’s largest four-wheeler manufacturing locations with capacity to produce one-million vehicles per annum, it said.

Maruti Suzuki had earlier indicated its plan to add five-lakh units of capacity in FY 2026–27, and the addition is in line with this plan. Maruti Suzuki currently manufactures the compact SUV Brezza and mid-SUV Victoris at the facility.

The foundation stone of the Kharkhoda facility was laid by the Prime Minister Narendra Modi in August 2022.

Recently, at its annual results MSIL had said that it will invest ₹14,000 crore in the current financial year (FY27) to add five-lakh more capacity in two plants — one each in Kharkhoda (Haryana) and Hansalpur (Gujarat) — from current capacity of 24 lakh units per annum.

In January this year, MSIL Board approved the purchase of land in Khoraj Industrial Estate, Sanand, Gujarat for its fifth manufacturing facility and announced ₹4.950 crore for land acquisition and preparation. In March, the Board also approved additional Rs.10,189 crore for phase-I development with 2.5-lakh unit capacity and development of common infrastructure and facilities.

RC Bhargava, Chairman, MSIL said that the growth is now more or less determined by the company’s ability to add capacity and to run.

“I don’t think any company in the world will be doing the kind of expansion at the rate we are expanding...two one-million plants at the same time...Of course, we run at 100 per cent (capacity)...so don’t look at market share. Look at how much we are expanding, how much we are utilising this capacity, how will the car is expected by the customers. I think those are much more aspects of a car company than this figure of market share,” he had said.

He said in FY26, MSIL’s sales were restricted by a limitation in the production capacity, with about 1.9 lakh pending customer orders at year end, including nearly 1.3 lakh orders in the small car segment of 18 per cent GST bracket. Besides, the dealer inventory was at a low of about 12 days’ stock.

Published on May 18, 2026