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India News News

Gujarat’s auto sector grows at 16.4 pc; sets sights on EV leadership

  • BY India News Newsdesk
  • August 21, 2025
  • 0 COMMENTS

Ahmedabad, Aug 20 (IANS) North Gujarat is fast becoming an epicentre of India’s automotive revolution, powered by the manufacturing strength of Suzuki Motors’ Gujarat plant, which has an annual capacity of 7.5 lakh car units, as issued by the Gujarat government on Wednesday.

At the upcoming Vibrant Gujarat Regional Conference (VGRC), the state will showcase not only new investment opportunities in the automobile and allied sectors but also its journey toward transforming into an international automotive hub.

In a move that signals the next phase of growth, Suzuki Motors has announced a Rs 3,200-crore investment to establish its fourth production line dedicated to boosting electric vehicle (EV) output.

Officials say this will not only expand the state’s manufacturing capacity but also accelerate Gujarat’s role in India’s electric mobility transition. The journey began with a wave of international investments between 2012 and 2015, when auto majors chose Gujarat as their base.

A major milestone came in 2014, when Suzuki signed an MoU to set up a mega manufacturing unit. Since then, the company has continued to expand in the state, creating significant employment and giving a major push to the auto-component industry in the Mehsana region.

Today, Suzuki’s Gujarat facility is one of the largest automobile manufacturing plants in the country. Gujarat’s strategic location and robust port infrastructure have further strengthened its status as a global export hub.

In 2024, the state contributed nearly Rs 3,459 crore worth of automobile exports, with South Africa, Saudi Arabia, Japan, the UAE, and Chile among its key destinations.

The investment momentum has also been strong. In FY 2022–23, Gujarat’s automobile sector attracted Rs 29,700 crore in investments, reflecting a robust 16.4 per cent CAGR over the last five years. The Mandal–Becharaji Special Investment Region (SIR) has now firmly established itself as a major auto-industrial cluster.

Adding to the momentum, Suzuki Motor Corporation recently unveiled two mega announcements: a Rs 7,300-crore battery plant for EVs and a Rs 3,100-crore EV manufacturing facility. Both projects are expected to further cement Gujarat’s reputation as India’s EV hub.

–IANS

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