Since 2009, Gujarat’s automobile sector has seen significant growth, spurred by Tata Motors establishing its Nano manufacturing plant in Sanand, situated around 50 km from Ahmedabad. Subsequently, the state has been a magnet for substantial investments, attracting both domestic and international players in the automotive industry. Now, with the global trend leaning toward electric mobility, the Gujarat government aims to position itself as a prime hub for electric vehicle (EV) manufacturing. In pursuit of this goal, it inked a Memorandum of Understanding (MoU) valued at Rs 13,000 crore with the Tata Group earlier in June this year. This move underlines the state’s commitment to embracing and fostering the burgeoning EV sector.
Scheduled from January 10 to 12, 2024, the 10th edition of the Vibrant Gujarat Global Summit will take place in Gandhinagar. This biennial summit serves as a pivotal platform for both businesses and governments to explore investment opportunities, forge collaborations, and establish partnerships.
Industry experts highlight the transformative impact of infrastructural projects like the Dholera Special Investment Region and the Delhi-Mumbai industrial corridor on the state’s automotive landscape. These developments are anticipated to significantly reshape Gujarat’s standing in the automobile sector, ensuring it remains future-ready and competitive in the evolving market.
Ratan Tata, former chairperson of the Tata Group, reflected on the company’s decision to relocate its Nano plant from West Bengal to Gujarat in 2011. The move was prompted by the quest for a more secure and stable environment conducive to the company’s operations and growth.
Since the inception of the Vibrant Gujarat Global Summit in 2003 by the then Chief Minister Narendra Modi, the automotive sector has progressed in tandem with the event. Over the years, the summit has evolved into a critical platform to attract investments and promote growth in the sector.
Several major investments have marked Gujarat’s automotive journey. In 2011, Ford Motors injected Rs 5,000 crore into its Sanand plant, while in 2014, Suzuki Motors made a significant investment of Rs 14,784 crore, leading to the creation of 9,100 jobs. Tata Motors acquired the Ford plant in Sanand in 2022, further consolidating its presence in the region. Additionally, MG Motors acquired GM India’s Halol Plant in 2017 with an initial investment of Rs 2,000 crore, establishing it as their sole manufacturing facility in India with a production capacity of 80,000 units per annum.