Is Gujarat poised to become India's electric vehicle manufacturing hub?

There are over 15 passenger car-makers in India. The data says a majority of them make vehicles in either Maharashtra or Tamil Nadu. The vicinity of Chennai and Chakan near Pune rolls out vehicles like no other region in India. Of late, Gujarat also carved its space in the vehicle manufacturing industry of India.

Gujarat is now on verge of beating both Maharashtra and Tamil Nadu in electric vehicle manufacturing. The number of parties interested in the western state of India indicates that Gujarat will be the EV manufacturing hub of India soon, reports LiveMint.

Earlier this month, Maruti Suzuki's Japanese parent Suzuki Motor Corporation had confirmed its plan to roll out electric vehicles from its Gujarat plant. Suzuki will set up a lithium-ion battery factory that will charge electric, hybrid and other vehicles from the company's stable. Suzuki also has plans to use the country as a key global manufacturing base.

On Wednesday (September 27), Mumbai-based business conglomerate JSW Energy also signed a memorandum of understanding (MoU) with the Gujarat government to set up India's first electric car manufacturing unit. The deal was signed to set up a Rs 4,000-crore unit and the plant is expected to be set up at Vanod village near Dasada in Surendranagar district. JSW's car factory is expected to start commercial production in the financial year 2021.

China's largest automaker SAIC Motor Corp, which owns the MG Motor brand, is also set to enter India with a hybrid and electric focussed portfolio. The firm has just completed the acquisition of Halol plant in Gujarat from General Motors India. SAIC is expected to roll out cars in 2019 for the Indian market.

In addition, Tata Motors is also looking to revamp sales of Ratan Tata's pet project, Nano car, by introducing an electric version. The world's cheapest car is currently manufactured at its factory in Sanand, Gujarat, and hence the EV iteration is also expected come from the Gujarat plant.

It also needs to be noted that Ford Motor Company and Mahindra & Mahindra had formed an alliance on September 18 to leverage their mutual strengths for mobility programs, connected vehicle projects, electrification and distribution within India and global markets. Ford has a new and largely unused plant in Gujarat. This plant is expected to have a crucial role in making EVs from the alliance.

All these projects indicate that Gujarat is already well ahead in terms of electric vehicle manufacturing over Maharashtra, Tamil Nadu or any other state in India.

Source: Livemint