The Hindu : Tamil Nadu / Chennai News : State to become number one automobile manufacturer

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Tuesday, Jul 08, 2008
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Tamil Nadu

Tamil Nadu - Chennai

State to become number one automobile manufacturer

N. Anand

CHENNAI: Tamil Nadu is poised to become the number one automobile manufacturer in the country with a production of nearly 1.56 million light and heavy commercial vehicles per annum from 2010, according to a senior officer of the Industry Department.

Tamil Nadu will replace New Delhi and Pune as the preferred investment destination for the automobile sector. The State will have a total annual manufacturing capacity of nearly 15.56 lakh light and heavy commercial vehicles by 2010 as against 10.54 lakh vehicles to be produced by companies in and around New Delhi and 8.86 lakh vehicles in Pune.

The State is already home for well-known companies like BMW, Hyundai, Ford, Nissan-Renault, Ashok Leyland, Caterpillar, Delphi, TRW Automotive, Mitsubishi, Komatsu and Saint Gobain. Most of the existing firms have approved their expansion plans and are in the process of executing them.

“We are getting steady flow of investment in automobile, automobile components and hardware sectors. The new units like Renault-Nissan, Ashok Leyland-Nissan and others have committed huge sums and will start commercial production by 2010. Next year, we might see investments of over $6 billion in car manufacturing facility alone,” a senior official said.

The 11th Five Year Plan of Tamil Nadu (2007-2012) prepared by the State Planning Commission states that the size of auto industry in the State is estimated to grow to Rs.67,500-90,000 crore ($15-20 billion) by 2015).

According to him, the first five years of liberalisation (1991-1996) saw investment inflow of Rs.1,700 crore into the State through a single project. The second five year period recorded investment of Rs.3,728 crore through nine MoUs. In the next five years, the State received Rs.2,355 crore through six projects.

From May 2006 to December 2007, the State concluded 10 MoUs with an investment potential of Rs.7,500 crore. The first six months of the current year witnessed 9 MoUs with an investment potential of nearly Rs.18,500 crore.

The State government officials are confident of achieving the targeted investment figure of Rs.30,000 crore for the current year.

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