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Chennai, the Detroit of Asia!!
Chennai is home to global and Indian auto majors like BMW, Ford, Hyundai, Mitsubishi, Nissan, Ashok Leyland, TVS Group, et cetera. It also has almost 35 per cent of India's share of auto ancillary units.
So why has Chennai emerged as the Detroit of South Asia? There are many reasons, not the least of which is the Tamil Nadu government's investment-friendly industrial policy.
With an impressive growth of 26.42 per cent last year, India is the second fastest growing auto market in the world, next only to China that grew at a scorching 42 per cent.
There are 46 registered OEMs in India. Out of these 15 are located in the southern states of the country. This shows that one-third of the concentration of the auto industries in India is in the four southern states.
In the southern states of India, there are about 74 projects which are at different stages from planning, implementation, or deferred. Of these, Tamil Nadu has the maximum number of projects (38), followed by 24 in Karnataka, 10 in Andhra Pradesh, and 2 in Kerala.
Ford was the first global auto manufacturer to come to Chennai, and it was followed by many more. The latest to enter is Nissan. On being asked whether he was happy and satisfied with Chennai, the Ford India managing director, Michael Boneham, said, "Yes, we are satisfied. You have a very stable government and legislative environment. There is a transparent industrial policy no matter which political party is in power. You have governments very supportive of the industry. The second thing is the availability of labour. Educated reliable labour is the strength of Chennai. Overall, we are very happy with our experience in Tamil Nadu.
But he was not that excited about the state of infrastructure. "I wouldn't say I am happy. There are still significant challenges in power, in terms of road, rail, etc.
Nissan is quite satisfied so far with the progress of the project as they could finish the plant in a record 21 months from the start. The managing director admitted that it was a record for even Nissan to build such a huge manufacturing plant in such a short period.
The company plans to export 110,000 cars in the first year, and it will go up to 180,000 the next year. And for the domestic market, they plan to hit 100,000 units per year.
Another auto company that is happy with Chennai is BMW that has set up base in the Mahindra City near Chennai.
Abhay Dange, general manager press and corporate affairs, BMW, says, "The first reason why BMW chose Chennai was because of the infrastructure provided by Mahindra City and Chennai. Then, the logistics like the facilities at the Chennai port. The single window clearance offered by the Tamil Nadu government attracted us and supported us. The experience in Chennai has been quite good so far. Mahindra World City is an excellent place. There may be power problems in other places but not in Mahindra World City."
Yezdi Nagporewala observes, "Chennai has the potential to become one of the top three automobile hubs in the world. Today, Chennai accounts for 30 per cent of India's share of automobile industry and 35 percent of India's auto components segment.
Source:Chennai, the Detroit of Asia? : Rediff.com Business
So why has Chennai emerged as the Detroit of South Asia? There are many reasons, not the least of which is the Tamil Nadu government's investment-friendly industrial policy.
With an impressive growth of 26.42 per cent last year, India is the second fastest growing auto market in the world, next only to China that grew at a scorching 42 per cent.
There are 46 registered OEMs in India. Out of these 15 are located in the southern states of the country. This shows that one-third of the concentration of the auto industries in India is in the four southern states.
In the southern states of India, there are about 74 projects which are at different stages from planning, implementation, or deferred. Of these, Tamil Nadu has the maximum number of projects (38), followed by 24 in Karnataka, 10 in Andhra Pradesh, and 2 in Kerala.
Ford was the first global auto manufacturer to come to Chennai, and it was followed by many more. The latest to enter is Nissan. On being asked whether he was happy and satisfied with Chennai, the Ford India managing director, Michael Boneham, said, "Yes, we are satisfied. You have a very stable government and legislative environment. There is a transparent industrial policy no matter which political party is in power. You have governments very supportive of the industry. The second thing is the availability of labour. Educated reliable labour is the strength of Chennai. Overall, we are very happy with our experience in Tamil Nadu.
But he was not that excited about the state of infrastructure. "I wouldn't say I am happy. There are still significant challenges in power, in terms of road, rail, etc.
Nissan is quite satisfied so far with the progress of the project as they could finish the plant in a record 21 months from the start. The managing director admitted that it was a record for even Nissan to build such a huge manufacturing plant in such a short period.
The company plans to export 110,000 cars in the first year, and it will go up to 180,000 the next year. And for the domestic market, they plan to hit 100,000 units per year.
Another auto company that is happy with Chennai is BMW that has set up base in the Mahindra City near Chennai.
Abhay Dange, general manager press and corporate affairs, BMW, says, "The first reason why BMW chose Chennai was because of the infrastructure provided by Mahindra City and Chennai. Then, the logistics like the facilities at the Chennai port. The single window clearance offered by the Tamil Nadu government attracted us and supported us. The experience in Chennai has been quite good so far. Mahindra World City is an excellent place. There may be power problems in other places but not in Mahindra World City."
Yezdi Nagporewala observes, "Chennai has the potential to become one of the top three automobile hubs in the world. Today, Chennai accounts for 30 per cent of India's share of automobile industry and 35 percent of India's auto components segment.
Source:Chennai, the Detroit of Asia? : Rediff.com Business
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