Gujarat’s Automotive Evolution: From Zero to a $3 Billion Hub

Source: Desh Gujarat

News Gujarats automotive evolution from zero to a 3 billion hub

In Gandhinagar, Gujarat, the automotive sector is a significant player in India's thriving industry, with a market value of USD 3 billion. Gujarat's annual vehicle exports surpass 800,000, making it a prominent automotive hub. This transformation began in 2009 with the Tata Motors plant in Sanand, drawing both domestic and foreign investments and propelling Gujarat's rapid growth in the sector.

In Gujarat's automotive sector, Ford Motors invested INR 5,000 Crores in 2011, creating 3,000 jobs. Suzuki Motors put INR 14,784 crore into a mega unit in 2014, leading to 9,100 jobs. Tata Motors acquired the Ford plant in 2022, strengthening the state's automotive industry. The partnership between Gujarat and JETRO established 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 ₹2000 crores, with an annual production capacity of 80,000 units, becoming MG's sole manufacturing facility in India.

The Mandal-Becharaji Special Investment Region (MBSIR) is a key automotive manufacturing hub with a USD 3 billion investment, home to industry giants Maruti Suzuki and Honda, boasting an annual production capacity of over 1 million vehicles. The International Automobile Center of Excellence (iACE), in Gujarat, is a cutting-edge facility for automotive research, innovation, and development, a beacon of advanced technology driving industry progress. Committed to excellence, iACE accelerates innovation, sustainability, and skill development, enhancing India's global automotive competitiveness.

Furthermore, Gujarat has solidified its status as a major exporter of automobiles and auto components, with exports exceeding 800,000 vehicles in the fiscal year 2020-21.

In alignment with the global shift towards electric mobility, Gujarat is actively promoting electric vehicle (EV) manufacturing. The State Government has entered into a historic MoU worth ₹13,000 crores with the Tata Group to establish an EV battery plant. This strategic move perfectly aligns with India's commitment to sustainable mobility and further reinforces Gujarat's position as a frontrunner in EV manufacturing.

Gujarat's extraordinary journey, from relative obscurity in the automotive industry to becoming a USD 3 billion automotive powerhouse, is a testament to visionary leadership, an environment conducive to business, and strategic collaborations. As Gujarat prepares to host the 10th Vibrant Gujarat Global Summit in 2024, it is abundantly clear that the state's trajectory of growth and innovation in the automotive sector will continue its upward ascent.