How Uttar Pradesh Is Emerging as India’s Next Auto Manufacturing Hub

UP

Uttar Pradesh (UP) is quickly becoming a strong player in India’s automotive industry. The state, traditionally known for agriculture and textiles, is now gaining attention for its auto manufacturing and electric vehicle (EV) production. This shift is being driven by government support, infrastructure development, and increased industrial activity.

1. Government Support Through EV Policy

UP launched its Electric Vehicle Manufacturing and Mobility Policy in 2022. This policy aims to attract investments worth ₹30,000 to ₹50,000 crore and create around 10 lakh jobs in the auto and EV sectors. The state government offers benefits such as capital subsidies, tax waivers, and support for setting up EV plants and charging stations.

Because of these benefits, companies like Servotech Power Systems have announced investments for EV charger manufacturing, and Automotive Manufacturers Pvt Ltd (AMPL) recently opened a new plant in Varanasi.

2. EV Manufacturing Park in Kanpur

To further support EV growth, an electric vehicle manufacturing park is being developed near Kanpur. Spread over 500 acres, this ₹700 crore project will include production facilities for EV motors, batteries, and chargers. It will also have a research and development center to support innovation in the EV sector.

This park is expected to attract both established manufacturers and startups interested in clean energy and electric mobility.

3. Boost in Infrastructure and Industrial Development

UP is developing its industrial zones through the Uttar Pradesh State Industrial Development Authority (UPSIDA). In May, UPSIDA allotted 113 industrial plots worth ₹700 crore to various industries, including those in the auto component sector. This move is part of UP’s plan to build a trillion-rupee economy.

Many of these plots are located in areas like Unnao, which is emerging as a hotspot for auto-component manufacturers.

4. Better Connectivity Through Industrial Corridors

The development of expressways and industrial corridors in UP is helping auto industries grow faster. Highways such as the Purvanchal Expressway and the Ganga Expressway provide better logistics, making it easier to move raw materials and finished vehicles across the state and country.

This improved infrastructure is a key reason why many companies are choosing UP as their manufacturing base.

5. Growth in Auto-Component Industry

UP is not just attracting large automakers but also becoming a strong base for auto-part suppliers. The state’s friendly industrial policies are helping both big companies and small manufacturers to set up new units. This is helping create a complete supply chain within the state.

Recent investments in Varanasi and other parts of the state are proof of the growing interest in UP’s auto-component sector.

6. Focus on Skilled Workforce

To support the growing auto industry, UP is promoting skill development programs. These programs help create a trained workforce ready to work in EV and auto production units. This not only benefits manufacturers but also creates more job opportunities for local residents.


Conclusion

Uttar Pradesh is steadily building its position as one of India’s top auto manufacturing hubs. With strong government policies, infrastructure growth, and rising investments in EV and component manufacturing, the state is set to play a key role in the future of India’s automobile industry.

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