Chandigarh, October 14 — Once known as the steel town of Punjab, Mandi Gobindgarh is fast transforming into the state’s new auto parts powerhouse. A BMW component plant worth ₹150 crore is set to start production next month — the latest sign that Punjab’s industrial landscape is shifting gears under Chief Minister Bhagwant Mann’s push for high-value manufacturing, according to officals,
Officials said the plant, which will produce 2.5 million BMW unit parts annually, marks Punjab’s growing presence on the global auto supply chain. Encouraged by the project’s success, the government now expects investments worth ₹15,000–₹20,000 crore in the auto sector this year alone, with several companies in advanced talks to set up facilities across the state.
“The aim is to make Punjab a serious player in advanced manufacturing — not just an agricultural state. The upcoming projects in Mandi Gobindgarh show investors’ confidence in our industrial capacity and skilled workforce,” a senior official in the Industries Department said.
To attract big-ticket investors, the state has rolled out a ‘Real Single Window System’ to fast-track approvals and ensure time-bound clearances. The Mann government has also formed sector-specific committees to promote technology transfer, skill training and market access for small and medium enterprises.
Industry insiders say the renewed policy focus is already showing results. Exports of auto components from Punjab have grown steadily over the past two years, accounting for around 7% of India’s total output in the sector. The upcoming wave of investment, they believe, could push that share into double digits.
The shift is particularly significant for Mandi Gobindgarh, historically dependent on steel rolling mills. A state government sub-committee is overseeing the transition of local units from coal-based furnaces to piped natural gas, aligning with the state’s green industrial policy.
Punjab’s auto units are now also gearing up for the electric vehicle (EV) revolution, manufacturing components such as transmission systems, motor housings and lightweight alloy parts. “Our focus is on future-ready technology. The EV ecosystem will be the next growth driver, and Punjab intends to lead that shift,” the official said.
With thousands of jobs expected to open up in engineering, quality control, logistics and management, the state has launched new skill development programmes in collaboration with auto manufacturers. “Our youth must be job-ready for the new industrial wave,” Chief Minister Mann recently said.
As Punjab readies to host the next round of investment talks later this year, Mandi Gobindgarh’s BMW plant will serve as a litmus test — a symbol of the state’s industrial reinvention and its bid to claim a spot on the global auto map.
