Set in the arid south of India, the state of Tamil Nadu (TN) is fast emerging as the automobile manufacturing hub with around 100 local and multinational automakers having at least one facility somewhere in the state and a local official talking of recent interest from Chrysler.
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Hyundai Motor Company set up a plant in Sriperumbudur 12 years ago and, since then, almost all major automakers have arrived. Meanwhile, Hyundai recently built a second facility with 600,000-unit annual capacity.
Other pioneering companies – Ford and India’s own Mahindra & Mahindra – have been followed by the Renault–Nissan Alliance which invested around US$11.25bn in a plant at Oragadam, 30km from the state’s capital Chennai (once known as Madras).
The TN government’s 11th five year plan (2007-08 to 2011-12) forecasts auto industry investments at $20bn, up from $4.5bn so far.
According to the report, 21% of all passenger cars, 33% of commercial vehicles and 35% of auto components produced in India come from TN, which employs over 200,000 in the industry and contributes 8% to India’s GDP.
According to TN’s principal secretary to the ministry of industries, Thiru Farooqui, the state’s auto industry increased production by 10%, sales by 12%, and exports by 15% which increased value of production by a sharp 30% during the middle of last year (June, July).
A recent state delegation to the USA brought the promise of a return visit by a team from Chrysler group though they have yet to visit India.
“The Chrysler group is very interested in our state and we are also very happy to have them here but I cannot say anything more than that at this moment” Farooqui said.
A Chrysler spokesman in the US told just-auto: “We have not announced any plans to build a manufacturing plant or any other facility in India.”
Kevin Jacobs
