How has Gujarat's auto manufacturing output surged 22 times in 15 years?

Synopsis
Key Takeaways
- Remarkable growth: Gujarat's auto manufacturing output increased 22 times in 15 years.
- Celebratory initiatives: The state government is hosting 'Vikas Saptah' to celebrate this milestone.
- Investment-friendly climate: The state has become a significant hub for automobile manufacturing.
- Post-pandemic recovery: The sector rebounded swiftly, doubling output within two years.
- Global exports: Gujarat exported over Rs 13,799 crore in auto components and vehicles in FY 2024-25.
Gandhinagar, Oct 9 (NationPress) The auto manufacturing output in Gujarat has experienced an extraordinary transformation over the last 15 years, showcasing an incredible growth of nearly 22 times in total manufacturing output.
To commemorate this significant achievement, the state government is hosting a statewide ‘Vikas Saptah’ from October 7 to 15, with October 10 designated as ‘Industry Entrepreneurship Day’, celebrating the innovative spirit and industrial excellence of Gujarat.
The momentum in the state’s automobile manufacturing sector began in 2009, fueled by numerous initiatives introduced by former Chief Minister Narendra Modi. Over the past 24 years, Gujarat has become a pivotal force in India’s industrial advancement.
As per the Government of India’s Annual Survey of Industries (ASI), the production of motor vehicles, trailers, and semi-trailers in Gujarat was approximately Rs 3,200 crore in 2008-09, which soared to Rs 71,425 crore by 2022-23, marking its highest achievement.
This remarkable growth indicates a Compound Annual Growth Rate (CAGR) of 24.84 percent, highlighting Gujarat’s successful journey within the automobile sector.
Gujarat is striving to establish itself as not only India’s but also the world’s most reliable manufacturing hub. The Make in India campaign, launched in 2014, has found one of its most powerful success stories in this state.
From 2015-16 to 2022-23, Gujarat’s motor vehicle, trailer, and semi-trailer manufacturing sector has skyrocketed by an impressive 12 times.
The manufacturing output surged from Rs 5,836 crore in 2015-16 to a record-setting Rs 71,425 crore in 2022-23, a leap that emphasizes the state’s manufacturing capabilities, welcoming investment climate, and strong industrial ecosystem.
In an impressive post-pandemic rebound, Gujarat’s auto manufacturing industry revived remarkably, more than doubling its output within just two years.
The most recent data for the motor vehicles, trailers, and semi-trailers sector indicated a jump in manufacturing output from Rs 34,107 crore in the pandemic-affected 2020-21 to a record Rs 71,425 crore in 2022-23, reflecting a phenomenal 109 percent increase.
The broader growth trend in the state has been equally remarkable. In 2018-19, production was at Rs 27,049 crore; by 2022-23, this figure had nearly tripled.
Gujarat has also enhanced its position as a leading global hub for automobile exports.
Data from DGCIS, Ministry of Commerce and Industry, indicates that in FY 2024-25, the state exported auto components and parts worth approximately Rs 2,628 crore and motor vehicles and cars worth Rs 11,172 crore, totaling Rs 13,799.79 crore.
This marks a 31.54 percent increase in motor vehicle and car exports compared to the previous year.
In FY 2024-25 alone, Gujarat exported 1,77,924 motor vehicles and cars to 102 countries, including South Africa, Japan, Saudi Arabia, Chile, the UAE, Mexico, and Colombia, showcasing its diverse global reach.
Over the last 15 years, the state has significantly developed in automobile manufacturing, auto components, logistics, and research & development.
With companies such as Suzuki, Tata, Hero Corp, and Honda, the Sanand and Mandal-Becharaji Special Investment Regions (MBSIR) have emerged as the state’s premier automotive hubs.
Sanand boasts a robust auto component ecosystem featuring major players like Tata Motors and JBM, while Mandal-Becharaji attracts international brands with its top-notch infrastructure and export-oriented facilities.
These hubs are pivotal in positioning Gujarat as a global manufacturing powerhouse, while advancing Prime Minister Modi’s vision of “Make in India” and “Make for the World.”