Gandhinagar: The automobile industry in Gujarat is worth USD $3 billion.
Gujarat has established itself as a key player in India’s automotive industry with an annual export of more than 8 lakh vehicles. With the opening of the Tata Motors manufacturing facility in Sanand in 2009, the state’s journey toward becoming an automotive hub got underway. This facility served as a draw for both domestic and foreign players.
The Vibrant Gujarat Global Summit (VGGS), founded in 2003 by then-Chief Minister Shri Narendra Modi, who is currently the Prime Minister, is closely related to the development of Gujarat’s automobile industry. The state’s socioeconomic landscape has changed as a result of this summit, making it a popular location for investment and innovation.
As automotive industry in Gujarat is booming, Gujarat’s position as an unrivaled hub for investment and innovation will be further cemented by the 10th edition of the Vibrant Gujarat Global Summit, which is scheduled for January 2024 and will be chaired by Hon’ble Chief Minister Shri Bhupendra Patel.
Ford Motors’ INR 5,000 crore investment in their Sanand plant in 2011 led to the creation of 3,000 jobs in Gujarat, and Suzuki Motors’ INR 14,784 crore mega unit in 2014 led to the creation of 9,100 jobs. Tata Motors bought the Ford plant in Sanand in 2022. The Japanese Industrial Park, India’s first plug-and-play park, is another outcome of Gujarat’s partnership with JETRO. With an initial investment of 2000 crores and an annual production capacity of 80,000 units, MG Motors acquired GM India’s Halol Plant in 2017. The fact that this is MG’s only manufacturing facility in India should be noted at this point.
With $3 billion in investments, the Mandal-Becharaji Special Investment Region (MBSIR) is a significant center for the manufacturing of automobiles and is home to well-known companies like Maruti Suzuki and Honda. It boasts a capacity to produce more than 1 million vehicles annually. Additionally, the partnership between the Gujarati government and Maruti Suzuki India Limited is demonstrated by The International Automobile Center of Excellence (iACE).
This innovative joint venture represents a significant turning point for the automotive sector. Gujarat’s iACE is a cutting-edge facility devoted to research, development, and innovation in the automotive industry. It serves as a center for cutting-edge technology, creating a favorable environment for improvements in the automotive industry. With its dedication to excellence, iACE seeks to advance the sector by fostering innovation, sustainability, and skill development. In the end, this will help the Indian automotive industry expand and become more competitive on a global scale.
With more than 8 lakh (800,000) vehicles exported in the fiscal year 2020–21, Gujarat has also grown to be a significant exporter of automobiles and auto parts.
Gujarat is actively encouraging the production of electric vehicles (EVs) in line with the global shift toward electric mobility. A historic Memorandum of Understanding worth $13,000 crores was signed by the State Government and the Tata Group to establish an EV battery plant. This perfectly complements India’s commitment to environmentally friendly transportation and further establishes Gujarat as a major center for EV production.
Gujarat’s transformation into a USD 3 billion automotive powerhouse from relative obscurity is a remarkable testament to visionary leadership, a business-friendly environment, and strategic partnerships. The trajectory of growth and innovation in the automotive industry in Gujarat will undoubtedly continue to rise as the state prepares for the 10th Vibrant Gujarat Global Summit in 2024.