Gujarat Transforming as Global Automotive Hub for Car, Electric Vehicle, and Ancillary Equipment Manufacturing

Gujarat Automotive Industries are steadily positioning themselves as a cornerstone in India’s mobility sector, with strong capabilities in car, electric vehicle, and ancillary equipment manufacturing. Gandhinagar (Gujarat): Once a nascent player in India’s automobile sector, Gujarat has rapidly evolved into a global automotive hub, commanding investments, innovation, and international attention. The state recorded an impressive ₹29,700 crore of capital investment in FY 2022–23, reflecting a CAGR of 16.4% over five years. This highlights Gujarat’s rise as a magnet for automakers and allied industries.

Studies show India’s EV market will grow at a CAGR of 49% from 2022 to 2030, and Gujarat is firmly aligning with this trend. Component suppliers, battery manufacturers, and charging infrastructure providers are setting up operations across the state. Analysts stress that Gujarat’s coastal advantage, supportive governance, and availability of skilled manpower create a full ecosystem that enables global competitiveness.

From the pioneering Tata Motors Sanand plant in 2009 to Suzuki’s billion-dollar EV ventures and Matter Energy’s new-age electric motorbike facility, Gujarat’s story illustrates how policy, partnerships, and innovation converge to build industrial strength.

Suzuki: The Game-Changer for Gujarat Automotive Industries

A defining moment came in 2014 when Suzuki Motor Corporation signed an MoU to establish a mega facility. Today, the Suzuki Gujarat plant produces 7.5 lakh units annually, ranking among the largest automobile facilities in India.

Building on this foundation, Suzuki has announced new investments:

• ₹32 billion for a dedicated EV production line
• ₹7,300 crore for an EV battery plant
• ₹3,100 crore for a new EV facility at Mandal-Becharaji Special Investment Region (MBSIR)

Mehsana highlights how these projects generate thousands of jobs while encouraging suppliers to set up nearby units. Industry analysts note that Suzuki’s sustained confidence in Gujarat validates the state’s long-term industrial framework.

Sanand: Gujarat’s New-Age Automotive Powerhouse

Sanand is now considered the “Automobile Hub of Gujarat,” home to Maruti Suzuki, Tata Motors, Honda Cars, Hero MotoCorp, and HMSI. The Sanand–Hansalpur–Vithalapur belt alone is projected to reach 1.46 million cars and nearly 3 million two-wheelers annually within four years.

Ford’s ₹5,000 crore Sanand facility in 2011 created 3,000 jobs before Tata Motors acquired the plant in 2022. With Tata scaling production, the belt is expected to directly employ nearly 5,000 people. Experts point out that Sanand’s rise is not only about large manufacturers but also about the ecosystem of ancillary suppliers growing alongside them.

Strategic Investments and Global Collaborations in Gujarat Automotive Industries

Gujarat’s automotive growth began with Tata Motors’ Sanand facility in 2009. Since then, it has attracted investments from MG Motor, which invested ₹2,000 crore in GM India’s Halol plant in 2017. This remains MG’s only Indian manufacturing base.

Another milestone was the collaboration with JETRO to establish India’s first plug-and-play Japanese Industrial Park, reinforcing Gujarat’s appeal for global partnerships. MBSIR today commands over $3 billion in investments and hosts industry giants including Maruti Suzuki and Honda, with combined capacity exceeding one million vehicles annually.

Such investments are supported by Gujarat’s world-class ports, enabling automobile exports worth ₹3,459 crore in 2024 to South Africa, Japan, Saudi Arabia, the UAE, and Chile. Analysts underline that logistics advantages play a crucial role in making Gujarat a top choice for global automakers.

Gujarat Automotive Industries Building Ancillary and Component Manufacturing

The auto component sector, valued at nearly $70 billion in India, is seeing Gujarat emerge as a reliable base. Suppliers in Rajkot and Vadodara are producing EV motors, driveline systems, and castings.

One study describes a Rajkot supplier that partnered with a European automaker for EV platform castings, expanding its workforce by 40% within two years. Analysts emphasize that such global tie-ups push local firms to improve quality standards and move up the value chain.

Government-backed Production Linked Incentives (PLI) for advanced chemistry cells and auto components further strengthen the ecosystem. This ensures that Gujarat Automotive Industries serve not only assembly plants but also the global supply chain for EV technologies.

Innovation and R&D Leadership in Gujarat

The International Automobile Center of Excellence (iACE), jointly established by the Gujarat government and Maruti Suzuki, serves as a premier R&D hub. It fosters skills development, new technologies, and collaboration between industry and academia.

Expert assessments show that such facilities reduce dependency on imports for critical R&D while positioning Gujarat as a center for innovation in mobility. Startups in charging software, predictive maintenance, and telematics also benefit from this collaborative approach, further diversifying the innovation base.

Accelerating the EV Transition

With global mobility shifting toward electric vehicles, Gujarat is proactively preparing itself as India’s EV capital. The Gujarat EV Policy–2021 and Atmanirbhar Gujarat Scheme create strong frameworks for both adoption and production.

Key initiatives include:

• A ₹13,000 crore MoU with Tata Group for an EV battery plant
• Registration of over 2.64 lakh EVs in the state
• Deployment of 800 e-buses across Gujarat

Matter Energy’s new facility at Changodar is producing the world’s first geared electric motorbike, the Matter Aera. Currently manufacturing 25 vehicles daily, it aims to scale to 1.2 lakh annually. Industry experts highlight this as a case study of Gujarat’s ability to support both global multinationals and local innovators.

Gujarat’s Green Growth Agenda

Chief Minister Bhupendra Patel has underlined the integration of renewable energy with green mobility. India’s non-fossil fuel capacity has grown to 217.62 GW as of January 2025, making it the third-largest globally.

Initiatives such as the PM Surya Ghar Muft Bijli Yojana are boosting solar adoption for households. Gujarat aligns this clean energy growth with EV expansion, creating synergy between two critical industries. Experts note that this integrated approach ensures Gujarat Automotive Industries remain sustainable while meeting rising demand.

Skilled Workforce as the Backbone of Gujarat Automotive Industries

Vijay Kumar, Associate Vice President – Automobile & EV at Spectrum Talent Management, emphasizes the critical role of talent in sustaining Gujarat’s automotive growth:

“The growth of Gujarat’s automotive and EV ecosystem depends not only on investments but also on a skilled workforce capable of handling advanced manufacturing and EV technologies. Companies increasingly require engineers, technicians, and specialists who are trained in EV powertrains, battery management systems, and smart manufacturing processes. States like Gujarat, with its focus on technical education, vocational training, and industry-academia collaborations, are uniquely positioned to meet this demand. A skilled workforce ensures higher productivity, innovation, and competitiveness in both domestic and global markets.”

Automotive Manufacturing Powerhouse Driving Skills and Growth

From Tata Motors’ inaugural Sanand facility in 2009 to Suzuki’s billion-dollar EV projects and Matter Energy’s innovations, Gujarat’s story demonstrates industrial scale and global competitiveness. With cars, electric vehicles, and ancillary equipment production advancing, the Gujarat Automotive Industries are firmly shaping India’s future while securing their place in global supply chains.