Due to the changing policy focus of both the state and the Central government towards adopting more environmentally friendly technologies, manufacturers of cars and two-wheelers that already possess manufacturing facilities in Gujarat are investing significant amounts to enhance their capabilities in producing EVs.

The growing demand for electric vehicles, which is driven by the reduced operational costs and the incentives provided by both the state and central authorities, along with advancements in technology and infrastructure, has motivated all major industry players to contemplate expansions.

Those who already have a presence in Gujarat are inclined to expand their operations for the purpose of manufacturing EVs. An illustrative example is the indigenous automaker, Tata Motors, which recently acquired Ford Motor Company's plant in Sanand through its subsidiary. At its current manufacturing facility in Sanand, Tata Motors produces the Tiago, Tigor range (comprising internal combustion engine, compressed natural gas, and electric vehicles), and the XpresT EV sedan.

Anand Kulkarni, who holds the position of Chief Product Officer and Head of High Voltage Programs at Tata Passenger Electric Mobility, stated, "Tata Passenger Electric Mobility, a subsidiary of Tata Motors, has acquired Ford India Private Limited's manufacturing plant located in Sanand, Gujarat. The total consideration for this acquisition, excluding taxes, amounts to Rs 7.25 billion. With the existing production capacities reaching near saturation, this acquisition will provide an additional manufacturing capacity of 300,000 units annually, which can be scaled up to 420,000 units per year. Tata Motors possesses robust plans to maintain its growth trajectory through a substantial lineup of future-ready products and proactive investments in electric vehicles."