Over the past 15 years, Gujarat has transformed into one of India’s most dominant automobile manufacturing regions. Sanand and MBSIR Gujarat (Mandal Becharaji Special Investment Region) have been at the heart of this growth, hosting leading auto giants such as Tata Motors, Maruti Suzuki, Honda, Hero MotoCorp, and several major auto component manufacturers. With the rapid rise of electric mobility, the Gujarat government is now steering these two industrial belts towards becoming dedicated EV manufacturing hubs.
A Thriving Auto Base Ready for EV Transformation
Sanand and MBSIR, Gujarat, have evolved into preferred destinations for automobile production, witnessing output growth nearly 22 times over the last decade and a half. Many automakers have already begun establishing EV and EV-component facilities in these hubs, encouraged by the robust ecosystem of over 1,000 ancillary and vendor units that support the region’s large-scale automobile operations.
Government Push: New Incentives & Priority Land Allocation
To accelerate the shift toward electric mobility, the Gujarat government is preparing special incentive schemes under its upcoming industrial policy. Land in Sanand and MBSIR will be allotted on a priority basis for EV and component manufacturers. The new incentives will support companies setting up EV plants, battery production units, and expansion of existing auto facilities into EV ventures. This includes dedicated benefits for manufacturers of EV batteries and battery components.
MBSIR: India’s Emerging EV & Battery Manufacturing Capital
Spanning 102 sq. km, MBSIR Gujarat is being developed as a smart, future-ready industrial city with modern infrastructure. Located within the influence zone of the Delhi–Mumbai Industrial Corridor (DMIC), it offers excellent export connectivity.
Major investments underline its rising prominence:
- Suzuki Motor Corporation has committed ₹3,100 crore for a new EV facility and ₹7,300 crore for a battery manufacturing plant.
- Maruti Suzuki is beginning serial production of its first electric SUV, the eVitara, at the Hansalpur plant, with export plans for 100+ countries.
- JSW Group will invest ₹4,000 crore to manufacture 2 lakh EVs annually in the region.
Infrastructure upgrades under Phase II include sewer lines, streetlights, and specialized water-supply networks to support advanced industries.
Economic Impact: Jobs, Exports & Supply Chain Strengthening
The rapid industrialization of MBSIR Gujarat has already created around 65,000 direct and 1 lakh+ indirect jobs. With globally competitive EV production, strengthened supply chains, and a surge in ancillary units, the region is set to emerge as a major export hub for next-generation vehicles.
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