Auto giants' new found destination, Gujarat

India's car market are the flash of everyone eyes, the dazzle has attracted various auto giants globally. The companies are investing hugely in India and one such auto hub in the country is Gujarat which has a club of auto majors setting up new plants in the state.

Tata Motors shifted to Gujarat after the hue and cry it witnessed in West Bengal two years ago. General Motors established its first unit in Halol, Gujarat 15 years ago which became the stepping stone on becoming the new auto hub for the auto makers. As the fifth Gujarat summit is coming on January 12-13, all the auto majors, tyre manufacturers and material makers are looking forward to the event.

Moreover, General Motors' Indian arm is expanding the auto company's manufacturing unit by investing Rs 500 crore. There are also news that various auto giants are investing in the state by setting up a new plant in this year.

John Deere, a well known US company which manufactures farm equipments is planning to establish an all new tractor production plant. As per the plans, Mahindra & Mahindra and Capital Tractors will commence new units in Gujarat. The Rajkot based domestic players tractors manufacturer are planning to invest Rs 500 crore for further expansion.

As per the auto industry experts in Gujarat, the tractor manufacturers are enjoying the upsurge in the growing agri sector. Other than the General Motors, Gujarat has various other auto makers plants such as Tata Motors, Bombardier Corporation and Asia Motor Works.

Hyundai Heavy Industries, the South Korean engineering chaebol is expected to declare that it will be investing Rs 400 crore for establishing a new engine production plant in the summit. It is also being learned Hyundai Motors, the second biggest auto manufacturer in India is planning a new automobile manufacturer unit near by Ahemadabad.

If the sources are to be believed, Ford India is also likely to set up a new plant here. It is being expected that Hyundai Motors and Ford will declare its plans by mid 2011.

The developing ports and better infrastructure such as the Delhi-Mumbai Industrial Corridor (DMIC) are few reinforces for the new growth in Gujarat. The Indian auto giant Maruti Suzuki has been shipping its cars from Mundra port. But the high point of Gujarat's becoming the auto hub was when Tata Motor's took the decision of setting up the manufacturing plant of Tata Nano in Gujarat, Sanand in October 2008.

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