Gujarat has emerged as a major automobile hub in India since the early 2000s. Several major automakers like Tata Motors, Ford, Maruti Suzuki, and Peugeot have established manufacturing plants in Gujarat, attracted by the state's pro-business environment, excellent infrastructure like ports and roads, availability of land and power, and supportive government policies. The city of Sanand in particular has become a major automobile manufacturing cluster, with plants by Tata Motors, Ford, and Peugeot bringing new jobs and economic opportunities to the region. The growth of the automobile industry in Gujarat has large benefits for the Indian economy through job creation and potential to increase exports.

1. Entry of Auto Majors in Gujarat:
Opportunities
By Manish Manghnani

2. Introduction
• 2001 – Mr. Narendra Modi in power
• Era of change and development
• Gujarat becoming an automobile hub
• Friendly investment policies and other factors
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3. GUJARAT: An emerging Auto-Hub.
1991
• Apollo Tyres was the first company to enter
Gujarat.
• Apollo's Gujarat plant is at Limda
1996
• General Motors started its plant at Halol with an
investment of Rs 2,000 crore.
2002-
• Heavy commercial vehicle manufacturer Asia Motor
Works set up its Rs 1,400 crore facility in Bhuj
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4. 2003
• Vibrant Gujarat summit has played a very instrumental
role in developing the industrial base of the state.
2006
• The Tata Nano Singur Conflict
2008
• Turning point for Gujarat auto industry.
• Gujarat welcomed the Tata Motors
2012
• Other Auto Majors like Ford India, Peugeot Maruti Suzuki
have also acquired Land in Sanand.
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5. Reasons for preferring Gujarat
• Abnormal Concession
• Tax Benefit
• Doled out concessions
• Business environment
• Better labor-industry relations
• Infrastructure
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6. • Port connectivity
• Readily available land
• Availability of power
• Pro-industry government
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7. Opportunity
• Pro-business environment
• Excellent infrastructure
• Facilitation of land acquisition
• Well developed ports (Mundra ,Kandla)
• The availability of skilled workforce
• Stronger political environment
• Electricity
• Location between Delhi and Mumbai
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8. Players
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9. TATA Nano
• 2008, plant shifted
• 725 acres
• Generates over 20,000 direct and indirect jobs
• Friendly approach of the farmers
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10. Hyundai
• Diesel engine manufacturing plant
• Invest 4,000 crore
• Officials visited site at Dholera
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11. Maruti Suzuki
• Maruti Suzuki India is in talks with the Gujarat
government.
• Maruti along with vendors, could invest up to Rs 18,000
crore , producing 20 lakh units.
• Maruti Suzuki India (MSI) said the new 700-acre plant
near Mehsana will be set up in a phased manner with an
initial investment of Rs 4,000 crore by 2015-16.
• The plant in Gujarat will generate direct employment for
over 2,000 people.
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12. Ford
• Applied for 500 acres of land
• Neighbor of TATA Motors in Sanand
• Ford’s second plant in India
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13. Why Ford selected Gujarat
• location as it offers ports for possible exports to western
markets.
• Cost and logistics considerations, business environment
and the State Government's “transparent and competitive”
offers.
• “We took a lot of time and saw activity to zero in on
Gujarat.”
(By Mr Michael Boneham, President and Managing Director, Ford India)
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14. PSA Peugeot Citroen
• PSA PEUGEOT CITROEN returned to India
• Peugeot’s Sanand plant which will be 17th globally
• It plans to invest nearly Rs 4,000 crore in the facility and hopes
to start production by 2014
• It will provide direct employment to 5,000 people and indirect
employment to another 25,000 persons
• Construction work near Sanand is scheduled to begin this year
end and the project will be commissioned by 2014 14

15. Growth in Rajkot
• Rajkot is a hub for the auto parts ancillary units
• 70 per cent share in the Indian auto parts
industry
• Registered a 15-20 per cent growth annually
• 500 manufacturers of auto components
• Total turnover is INR 1500 crore
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16. Sanand
• Sets opportunity for Gujarat to be an auto hub
• 2008: Tata Nano plant
• July 28: Ford India announced its second Indian facility
on 480 acres at Sanand.
• September two: Peugeot, too, announced its re-entry
into India via Sanand, from 584 acres of land.
• They are investing Rs 4,000 crore each
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17. Opportunities due to Sanand
• Sanand is a part of special investment region, which
permits firms investing there to avail various fiscal and non-
fiscal benefits, reducing project costs, including time for
completing the project cycle.
• New jobs in automobile hub sector.
• Economic and employment opportunities.
• Avail of various tax incentives.
• Easy availability of land
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18. Benefit to Indian Economy
1. Mother industry for every direct job in the OE & minimum 5-7 indirect
jobs are created.
2. Importance of transport equipment.
3. Providing job opportunities for the design, hardware and software
engineers.
4. Help India to develop a niche position globally and diversify its export
basket.
5. Healthy competition among auto hubs.
6. It would assist India in progressing towards the goal of increasing the
share of manufacturing in GDP from 16% in 2010 to 25% by 2022.
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19. Thank you
By Manish Manghnani