en.Wedoany.com Reported - Over the past fifteen years, the Sanand industrial area on the outskirts of Ahmedabad, Gujarat, and the Mandal Becharaji Special Investment Region (MBSIR) have become core zones for automotive manufacturing in India. As the electric vehicle (EV) market accelerates its expansion, the Gujarat government is promoting the electrification transformation of these two major automotive manufacturing clusters and plans to develop them into comprehensive EV manufacturing hubs covering the entire industry chain.
According to informed sources, the upcoming new industrial policy will introduce special incentives for the automotive manufacturing sector, focusing on supporting the production of electric vehicles and their components. The policy includes prioritizing land allocation for automotive manufacturers, providing tax benefits and subsidies, and encouraging existing automotive companies to expedite their transition to electrification. For instance, companies like Tata Motors, Maruti Suzuki, Honda, and Hero MotoCorp, which already have established manufacturing capacities in the region, are expected to receive additional policy support for their EV expansion projects. Furthermore, companies engaged in manufacturing EV batteries and core components will also be included in the support scope.
Data shows that Gujarat's automotive manufacturing output has increased approximately 22-fold over the past 15 years. As core development zones, Sanand and MBSIR have attracted dozens of vehicle manufacturers and component suppliers. Currently, these two industrial areas not only boast a complete automotive manufacturing ecosystem but have also made early strides in the EV sector — several companies have set up dedicated production lines here, and supporting suppliers of key components like batteries and motors have established localized production capacities, providing a foundation for the electrification transformation of automotive manufacturing.
"The government's goal is to create specialized automotive manufacturing clusters by concentrating resources, thereby reducing operational costs for companies and enhancing synergy efficiency," said a senior official involved in policy formulation. "This will help India build a more competitive industrial system in the field of electric vehicle manufacturing."
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