Maharashtra set to gain as auto majors like M&M, Mercedes-Benz line up mega investment plans

MUMBAI: Maharashtra is making a strong comeback in the automobile sector after losing out to Gujarat, Andhra Pradesh and Tamil Nadu in recent years, with companies promising fresh investments worth billions of dollars in the western state over the next five to seven years. US automobile giant General Motors has committed to invest $1 billion (Rs 6,770 crore) in new facilities.

The Maharashtra government has signed memoranda of understanding with companies such as Mahindra & Mahindra, Mercedes-Benz and Fiat Chrysler, which are expected to bring in $2.5 billion to the state, including from component manufactures.

The planned investments are estimated to generate direct employment to 15,000 to 17,000. Two to three times more people are expected to get indirect jobs.

For several auto makers, such as from Mahindra and Bajaj Auto to Audi and Mercedes-Benz, Maharashtra is already home.

While the state has managed to hold on to existing investors, fresh investment over the past few years has mostly gone to Gujarat and Andhra Pradesh. Despite courting Maruti Suzuki and Ford for long, Maharashtra lost out on the investment to Gujarat. But now the state government is actively pursuing auto makers, as the industry both brings investment and create jobs at large scale.

Mercedes Benz India Limited

Mahindra India