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Suzuki Expansion Strengthens Gujarat’s Role as Global Auto Hub

Prime Highlights

  • Suzuki to set up fourth production line in Gujarat with ₹13,200 crore investment
  • Focus on scaling electric vehicle (EV) manufacturing capacity

Key Facts

  • Gujarat already hosts one of India’s largest auto plants with 7.5 lakh cars per year
  • State to showcase auto growth at Vibrant Gujarat Regional Conferences

Background

According to the Chief Minister’s Office statement, Suzuki Motor Gujarat is set to invest ₹13,200 crore in building a fourth production line at its plant. The new line will be mainly dedicated to the production of electric vehicles (EVs), subsidizing the already well-established status of an automobile hub in Gujarat.

This addition arrives following the previous intentions of Suzuki to invest in a 37300 crore battery factory in the state and a 33100 crore EV facility. Such initiatives bring to the fore the fact that Suzuki is a key player in the burgeoning automobile sector in Gujarat.

Gujarat’s auto growth began picking up between 2012 and 2015, when major global companies started building factories in the state. The opening of a large plant in Mehsana in 2014 by Suzuki proved to be a turning point. The company has since then provided thousands of job opportunities and pumped up the auto parts sector in the region.

The Suzuki Motor Gujarat plant is now one of India’s largest car-making facilities, with an annual capacity of 7.5 lakh vehicles. It not only caters to domestic demands but also exports vehicles valued at 3,459 crores to many countries, including South Africa, Saudi Arabia, Japan, the UAE, and Chile.

Official data shows that Gujarat’s auto industry drew investments worth ₹7.29 lakh crore in FY23, registering a 16.4% compound annual growth rate over the last five years. The Mandal Becharaji Special Investment Region (SIR) has meanwhile developed into a major center for automobile production and allied industries.

The state government will make these achievements count at the upcoming Vibrant Gujarat Regional Conferences (VGRC) as opportunities in auto and EV will be presented to investors around the globe.

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