Maruti Suzuki and Suzuki Motorcyle signed a formal agreement on Thursday with the Haryana state government to set up manufacturing facilities on a 900 acre-plot in Industrial Model Township (IMT) Kharkoda in Sonipat.

The Haryana government has announced that Maruti Suzuki will invest Rs 20,000 crore in the new plant, which will give employment to 13,000 people. Of the 900 acres, Maruti Suzuki has been allotted 800 acres and 100 acres has been allotted to Suzuki Motorcyles.

Haryana chief minister Manohar Lal said Rs 2,400 crore was spent to purchase the land which was authorised through the Haryana State Industrial and Infrastructure Development Corporation.

The event also marked four decades of Maruti’s journey in India. Congratulating the company, the chief minister said: “Japan and India’s relations are 70 years old and these relations should grow stronger.”

MSIL chairman R.C. Bhargava said: “This was the biggest investment for Maruti, and perhaps the biggest investment in car manufacturing anywhere in India.”

Talking of the market potential, Bhargava said: “In Kharkoda, one million cars a year will be produced which will meet demand for cars in India and abroad. Subject to market conditions, Maruti will reach full capacity utilisation in Kharkoda in eight years.”

Kenichi Ayukawa, executive vice-chairman, MSIL said: “Our first plant in Gurgaon was on a 300-acre plot, the Manesar plant came next on 600 acres, we further expanded with a 600-acre plot at Rohtak. We are delighted to sign for our biggest manufacturing facility on 800 acres at Kharkoda.”