Modi and Takaichi Inaugurate Maruti Suzuki's New Manufacturing Facility in Haryana

Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi jointly inaugurated Maruti Suzuki India's new manufacturing facility at Kharkhoda in Haryana on Thursday via video conferencing, marking one of the biggest investments in India's automobile sector in recent years.

The inauguration was held as part of the India-Japan Economic Forum, where over 150 Japanese companies participated as the two countries looked to deepen cooperation across manufacturing, semiconductors, artificial intelligence, clean energy and mobility. It coincided with the 16th India-Japan Annual Summit, held during Takaichi's first official visit to India as Prime Minister, from July 1 to 3.

Ahead of the visit, Japan's Deputy Chief Cabinet Secretary Masanao Ozaki said in a post on X that he hoped the visit would lead to "concrete and remarkable development in Japan-India economic relations."

Citing Japanese daily The Yomiuri Shimbun, Ozaki said around 120 cooperation initiatives worth nearly 2 trillion yen (about $12.5 billion) were expected to be announced during the visit. The figure sits within a broader 10 trillion yen, ten-year private investment commitment from Japan to India agreed last year, the report added.

Fourth manufacturing facility in India

The Kharkhoda facility is Maruti Suzuki's fourth manufacturing facility in India after Gurugram, Manesar and Gujarat. The foundation stone for the facility was laid virtually by Prime Minister Modi in August 2022. Suzuki Motor Corporation's Indian subsidiary commenced commercial production at the plant from February 25, 2025, according to the company.

Two manufacturing units at the facility are currently operational with a combined installed production capacity of 5 lakh vehicles annually. The company plans to expand the facility's production capacity to 10 lakh vehicles a year in phases.

Spread across nearly 800 acres, the facility includes an integrated supplier park aimed at strengthening the manufacturing ecosystem and improving operational efficiency. Maruti Suzuki has earmarked a total investment of Rs 35,000 crore for India. The fully developed Kharkhoda manufacturing complex is expected to create more than 21,000 direct jobs, besides generating employment through ancillary industries, logistics providers and component manufacturers.

Built around Industry 5.0 technologies

The Kharkhoda facility has been designed around the company's Suzuki Smart Factory concept and incorporates Industry 5.0-enabled manufacturing technologies, including AI-powered human-aware collaborative robots, or cobots, to improve manufacturing precision, productivity and workplace safety.

The facility will operate using 100 per cent renewable electricity, feature 100 per cent water recycling and function as a Zero Liquid Discharge manufacturing unit. Maruti Suzuki also plans to commission a 10-tonnes-per-day biogas plant at Kharkhoda within FY2026-27, and build an in-plant railway siding to support greener logistics, in line with the company's broader push to expand rail-based vehicle dispatches.

According to the company, the Kharkhoda project is a key step in its Make in India, Make for the World strategy. Maruti Suzuki remains India's largest passenger vehicle manufacturer, accounting for nearly half of all passenger vehicle sales in the country.