Gujarat’s ascendance in the automobile sector began in 2009 with Tata Motors’ Nano plant, marking the start of a journey that transformed the state into an investment magnet. From Tata Nano to major global players, Gujarat’s automobile landscape now eyes leadership in electric vehicle (EV) manufacturing.
Tata Motors’ decision to set up its Nano manufacturing plant in Sanand in 2009 marked the inception of Gujarat’s automotive journey. The move was driven by the state’s commitment to providing security and stability for investments.
The biennial Vibrant Gujarat Global Summit, initiated in 2003 by then Chief Minister Narendra Modi, has played a pivotal role in attracting investments. The event has become a platform for businesses and governments to explore opportunities and foster partnerships.
Over the years, Gujarat has seen substantial investments from key players. In 2011, Ford Motors invested INR 5,000 crore in its Sanand plant. Suzuki Motors followed in 2014 with an investment of INR 14,784 crore. Tata Motors acquired the Ford plant in Sanand in 2022, further solidifying the state’s automotive landscape.
In June 2023, the Gujarat government signed a significant INR 13,000 crore Memorandum of Understanding (MoU) with the Tata Group, emphasizing the state’s commitment to leading in electric vehicle manufacturing.
Gujarat’s success in the automotive sector is evident in its FDI contribution, with 13% of the state’s total Foreign Direct Investment directed toward this sector. Nationally, the auto sector attracts 5% of the country’s overall FDI. The state’s automotive sector, valued at USD 3 billion, has become a significant exporter of vehicles and components.
The Mandal-Becharaji Special Investment Region (MBSIR) hosts major players like Maruti Suzuki and Honda, reflecting investments of USD 3 billion and an annual production capacity of over 10 lakh vehicles. The state emphasizes research, development, and innovation, evident in the International Automobile Center of Excellence (iACE) joint venture with Maruti Suzuki.
Gujarat’s automotive sector, backed by robust infrastructure initiatives and a conducive business environment, positions itself as a powerhouse for automobile investments. With a strategic focus on electric mobility, the state aims to lead the charge in India’s electric vehicle revolution.
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