Gujarat is fast emerging as the new El Dorado for automotive companies in India. When Tata Motors’ Nano plant in Singur, West Bengal, was shut because of local opposition to land displacement in 2008, Gujarat rolled out the red carpet enabling Tata to shift its plant lock, stock and barrel to Sanand.
Maruti Suzuki has two plants in Haryana: the Manesar plant and another at Gurgaon, approximately 25km away. Over the past three decades the company has been at the centre of overall economic development of the state from an agrarian economy to an industrial one. The abundance of automotive component manufacturing and the huge transport business opportunity in and around both plants has led to a boom. Any move to trim down production is bound to impact the local economy. It is also one of the factors in Haryana’s favour that the supplier base is so well developed in comparison to Gujarat, which Rathore describes as only “semi-developed”, though he added that with the number of manufacturers now heading there, suppliers won’t hesitate in committing.