Gujarat gained the maximum limelight as a preferred location for auto manufacturing when Tata Motors entered the state. Adversely affected by the incessant interference of the government of West Bengal, Tata Motors ultimately shifted its multi million Tata Nano project to Gujarat. Gujarat was already pulling a lot of attention as well as investments from national and international businessmen. The state was promoted as a 'business friendly' state and as a result, the state economy charged-up. Gujarat’s friendly business policies are believed to be the major reason of its dominance on Chennai as the most favorable location of automobile manufacturers.
Car companies are inclined towards Gujarat because the conditions that define a business are quite peaceful and controlled skillfully. While dominating labor unions frame paths for its company in most parts the country, Gujarat has a clean record comprising no issues of worker's strike or unrest at the production location.
General Motors has its footprints imprinted on the soil of Gujarat for a very long time now. It had set up a car manufacturing plant in Gujarat way back in 1996. Maruti Suzuki, India's biggest passenger car company, is in no mood to stay away from the auto hub as it is planning to build a car manufacturing unit in Gujarat. The car giant targets to produce 2 million cars annually. PSA Peugeot Citroen is another auto leader that has shared its will to set up a plant for the manufacture of mid-size sedans. 27 component makers have already brought in by the Nano plant and 15 more are expected to join soon, in order to meet the swelling demands of the Tata Nano project.
With so much happening in Gujarat, there must be a strong force that is pulling the buzz. One of these forces is the location of Sanand. It is a part of the Delhi-Mumbai Industrial Corridor, a multi-billion dollar mega infrastructure project. In addition, the region ensures that companies having their factories in Gujarat have agile and easier access to markets in west and north India, both of which are pertinent zones for car sales. If experts are to be believed, contrary to the favorable condition in Gujarat, companies with operations in others part like Chennai, may take up to 10 days to transport cars from Tamil Nadu to north India.
Ford’s new facility in Gujarat would help in reducing the cost of transporting the vehicles to the domestic market and also provide access to west coast ports for exports. This fact has been a driving force, particularly for Ford Motors.
The state government does icing on the cake by ensuring that skilled and potentially sound workforce is being deployed in the production processes. In addition, Sanand enjoys the status of a special investment region, which allows companies to get benefited by a range of tax incentives, as well a fast-track approval processes.
According to reports in the media that are making news, state-owned Gujarat Industrial Development Corporation (GIDC) has also acquired at least 5,000 acres of land from farmers in villages around Sanand to offer it to automobile companies interested in expanding or launching operations here.
Thus, Gujarat deserves to be termed as the auto hub of India as it proves to be the strongest contender amongst the other regions of India, in terms of what it takes and gives in return.
