Chandigarh, October 14 — Punjab’s traditional industrial town of Mandi Gobindgarh is scripting a new story — one of high-end engineering and global investment. A modern facility to produce BMW auto components is set to go live next month, signalling the state’s rapid rise as a serious player in India’s automobile manufacturing network.
The ₹150-crore plant will manufacture around 2.5 million BMW parts annually, reflecting growing confidence among global manufacturers in Punjab’s infrastructure and workforce. With a surge of interest from auto majors, the state government now expects fresh investments worth ₹15,000 to ₹20,000 crore in the coming year.
Officials attribute this momentum to Chief Minister Bhagwant Mann’s push for investor-friendly governance. The Real Single Window System, introduced by the Mann government, ensures faster approvals and eliminates bureaucratic delays that once discouraged industries from setting up shop in the state.
“Punjab’s industrial climate has changed dramatically — from red tape to real time,” said a senior industry department official. “Mandi Gobindgarh, Ludhiana and Rajpura are becoming magnets for auto and EV component makers.”
The new industrial policy also emphasizes collaboration between big firms and MSMEs, promoting local entrepreneurship and technology upgradation. Committees have been formed for sector-specific growth, particularly in auto components and electric mobility.
Exports from Punjab’s auto sector have been steadily increasing, currently accounting for about 7% of the national total. The government hopes the upcoming investments will further raise this share, making Punjab a significant link in the global automotive supply chain.
The shift is also creating thousands of skilled jobs. The state is aligning its skill development programmes with industry needs, training youth in manufacturing, design, quality testing and logistics.
Meanwhile, the transition of traditional steel-based industries in Mandi Gobindgarh to clean fuel and advanced manufacturing is reshaping the town’s identity. Once known for its furnaces, the city is now emerging as Punjab’s “Detroit of the North.”
As global automakers like BMW set up units here, Punjab’s ambition to become a national auto hub looks closer than ever — driven by policy reform, investor trust, and a new industrial mindset that sees the state not just as India’s granary, but as its next manufacturing powerhouse.
