After Tata, Maruti and Peugeot also target Gujarat

It is after Tata’s small car Tata Nano entered Gujarat that car makers including Maruti and Europe's second-largest car producer Peugeot Citroen have lined up to set up their units in the state. Two factors primarily govern this sentiment; easy availability of skilled labor and favorable policies of the government. Moreover, the recent month long agitation at General Motor’s unit in Gujarat also seems to have not affected the decision of the two car makers.

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Notably, Maruti has recently decided to have its second plant in Gujarat. Currently Maruti has a production plant in Haryana. Maruti is hoped to launch its small car Maruti Cervo this year. On the other hand Peugeot is planning to comeback in India and would manufacture mid-sized sedans in Gujarat. Experts believe that the basic reason why car makers like Maruti, Tata and Peugeot are eyeing Gujarat is that the state is in the state of constant industrial development, there is easy land availability and most importantly there is sufficient power and transport facilities in the state.  

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In addition to it chief minister of Gujarat Narendra Modi is said to be in the process of making Gujarat an auto hub similar to Chennai, Pune and Gurgaon and this was also announced at the investors’ summit in January this year. Already the state houses car makers such as General Motors, Asia Motor Works, bike makers such as Electrotherm and Ajanta. Besides the three wheeler company Atul Auto also has its plant in Gujarat. Most importantly the process begun with Tata Motors decision to manufacture Tata Nano in Gujarat in 2008 and now Indian and foreign car makers are thinking of moving to Gujarat. Presently, Tata Motors has over 1,100 acre Tata Nano plant in Gujarat. Besides a plant at Sanand in Gujarat Tata cars are also produced at plants in Jamshedpur, Pune, Lucknow and Pantnagar.

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