Gujarat’s Automotive Evolution: From Zero To USD 3 Billion Hub
Gujarat’s automobile sector today stands valued at USD 3 billion. With over 8 lakh (800,000) vehicles exported in the fiscal year 2020-21, the state of Gujarat is contributing immensely in shaping India's automotive landscape.
Over the past two decades, the state's journey towards becoming an automotive hub began with the establishment of the Tata Motors manufacturing plant in Sanand in 2009, acting as a magnet for both domestic and international players. Gujarat's automobile industry success stories include Ford Motors' Rs. 5,000 crore investment in their Sanand plant in 2011, generating 3,000 jobs, and Suzuki Motors' Rs. 14,784 crore mega unit in 2014, creating 9,100 jobs.
In 2022, Tata Motors acquired the Ford plant in Sanand. Additionally, Gujarat's collaboration with JETRO has resulted in India's first plug-and-play park, the Japanese Industrial Park. In 2017, MG Motors acquired GM India’s Halol Plant with an initial investment of Rs. 2000 crore and a production capacity of 80,000 units per annum. This is also MG Motor’s only manufacturing facility in India.
The Mandal-Becharaji Special Investment Region (MBSIR), boasting $3 billion in investments, also stands as a pivotal automotive manufacturing hub hosting major players such as Maruti Suzuki, and Honda. It boasts a combined annual production capacity of over 1 million vehicles. In addition, The International Automobile Center of Excellence (iACE) stands as a testament to the collaboration between the Government of Gujarat and Maruti Suzuki India.
iACE, located in Gujarat, serves as a state-of-the-art facility dedicated to research, development, and innovation in the automobile sector. It acts as a hub for cutting-edge technology, fostering a conducive environment for automotive advancements.
In keeping with the global shift towards electric mobility, Gujarat is actively promoting electric vehicle (EV) manufacturing. The State Government has signed a MoU with the Tata Group, worth Rs. 13,000 crore, to establish an EV battery plant and become a hub for EV manufacturing.
