Namoleague news- Why Gujarat can be India’s biggest automobile hub
Published on: Mar 3, 2016
Transcripts - Namoleague news- Why Gujarat can be India’s biggest automobile hub
Why Gujarat can be India's biggest automobile hub
Gujarat Chief Minister Narendra Modi dreams of making Gujarat an automobile hub. His
dream does not seem far-fetched as many auto makers are now flocking to Gujarat. An
investor-friendly government, transparency, good infrastructure, easy connectivity to ports
and an efficient rail and road network make it a hotspot for the automobile industry.
The entrepreneurial sprit and a strong base of auto ancillary units make the environment
congenial for automakers in Gujarat. With all the automakers focused on exports, Gujarat
becomes attractive with its well developed ports. The transparency in dealing with officials,
ease of setting up a business has also been hailed as big advantages here. While auto
manufacturers face frequent labour strikes in other states, Gujarat has not been confronted
with major labour issues. The auto ancillary hubs in Rajkot, Ahmedabad and Vadodara play
a vital role in further developing Gujarat as an automobile hub. The manufacturing sector
forms the backbone of Gujarat's economic growth. With Gujarat poised to grow further as
an investment-friendly destination, the auto industry is geared to spin fortunes from the
Apollo Tyres was the first company to enter Gujarat in 1991 with an investment of Rs 1400
crore (Rs 14 billion).
General Motors started its plant at Halol with an investment of Rs 2,000 crore (Rs 20 billion)
In 2002, heavy commercial vehicle manufacturer Asia Motor Works set up its Rs 1,400 crore
(Rs 14 billion) facilities in Bhuj.
In 2008, Gujarat welcomed the much troubled Tata Motors to fulfill its dream of making the
world's cheapest car. Ceat Tyres was the next to follow. The company set up a
manufacturing plant investing Rs 700 crore (Rs 7 billion).
Ford India will set up its manufacturing unit right next to Tata Motors' Nano factory at
French auto major Peugeot is considering setting up a manufacturing facility in India and is
scouting for 150 acres of land in Gujarat. After Tata’s Nano and Ford it’s Peugeot’s turn to
have chosen destination Gujarat.
It’s official! Maruti Suzuki India is driving into Gujarat for setting up its seventh plant in
Hyundai keen on new plant in Gujarat
Bombardier's Gujarat plant to be hub for exports to Asia
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