Gujarat auto sector to employ 8 lakh in 3 years

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Gujarat is set to step into the big league of India’s auto hubs by employing 8 lakh people over the next three years. The state is attracting an increasing number of car makers keen to set up production facilities as Gujarat offers better port connectivity, a key requirement for exports.

At present, Gurgaon, Chennai and Pune are the country’s top vehicle producing centres, together employing 13 million people directly and indirectly.

Ford Motors, the latest entrant to the state, said it will generate 30,000 direct and indirect jobs in Gujarat. Maruti Suzuki’s RC Bhargav estimates his upcoming plant in Gujarat will grant employment to 1.5 lakh. Peugeot, Hero Honda, Bajaj Auto, too, are in talks with the state that saw momentum picking up after Tata Motors chose Sanand to house its Nano.

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Since 1991 when Apollo Tyres came to Gujarat, the state has seen its workforce swell to 4 lakh. The state now manufactures 6 lakh cars, 48,000 three-wheelers, 50,000 trucks and 2.5 lakh e-bikes every year. Experts say production of one car helps five persons earn their livelihood.

Sanand, 40 km from the state capital, will roll out about 8 lakh cars per annum after Tata Motors expands its capacities to 5 lakh and Ford commences production of 2.4 lakh units by 2014.

Economists say this will have a multiplier effect on the employment numbers.

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