September 27, 2022

Gujarat is fast becoming the most important center of the country in the manufacture of passenger cars. According to the Society of Indian Automobile Manufacturers (SIAM) data, 21.75 lakh passenger cars were produced in India in the year 2019-20, of which 7.10 lakh cars were produced in Gujarat itself. In this way, every third car made in the country is ‘Made in Gujarat’.

On an average, Gujarat produces about 33% of the passenger cars produced in the country. Currently, four companies in the state have car manufacturing plants of Maruti Suzuki, Tata, Ford and MG Motors. A senior IAS officer of the Gujarat government said that Honda is also keen to build a plant in Gujarat and it will probably start functioning in the coming year.

According to state government officials, Gujarat has a total production capacity of more than 10.90 lakh passenger cars. Maruti is going to increase its production capacity to 2.50 lakh cars by installing a second production line in the coming time. Apart from this, Mahindra & Mahindra along with Ford is also working on plans to make cars in Gujarat. According to our estimates, the installed capacity of car manufacturing in the state could reach 1.5 million in the next two years.