Major auto manufacturers are on a prowl for the ideal location just as India becomes the best place to bet on. There are mind-boggling investment figures involved here, B&E’s Pawan Chabra investigates...
Players like Hyundai, Toyota, Maruti, Volkswagen and GM have already announced their plans of their Indian sojourn. Speaking on the topic, Arvind Saxena, Senior Vice President (Sales & Marketing), Hyundai Motor India asserted, “We are exporting almost 66% of the cars that are being exported from this country.” This explains the importance and acceptability of Indian manufacturing. Volkswagen on the other hand has brought a massive investment of an incredible Rs.24.5 billion for its Pune plant. Honda Siel (HSCI) on its part has already announced a Rs.10 billion Jaipur unit. The Detroit duo GM and Ford has ambitious plans as well with the former already investing a whopping Rs.12 billion in its second plant at Pune. TATA’s investment of Rs.15 billion at Singrur for the production of the much hyped Nano has also been attracting attention for long. It seems that the players in the industry have realised the potential in the Indian auto market and have begun to take it very seriously. Discussing about the potential of the new plant Janeswar Sen VP, Marketing & Sales, HSCI avers, “North India comprises of 40% of the market in India, and hence the proximity to the biggest market has been a big consideration for us. This area is on the dedicated Rail freight corridor notified by the Government of India. Therefore we can expect good infrastructure and logistics facilities here.”
Interestingly, both Maruti Suzuki and HSCI have decided to open their plants in Manesar, Haryana and Rajasthan respectively (away from the present auto belts). Other than that, HSCI also has a plant at Greater Noida. Noticeably, India mainly has two renowned auto belts, one being in the reigon of Pune- Nashik- Auranagabad and the second in the southern part of the country. Interestingly, none of them came up with an intention to create such belts in that particular region but it happened automatically. The state governments tried to lure the auto players by giving tax-holidays and the rest followed. Moreover, the proximity to ports, supporting infrastructure and presence of other players was also an added advantage for these regions.
Players like Hyundai, Toyota, Maruti, Volkswagen and GM have already announced their plans of their Indian sojourn. Speaking on the topic, Arvind Saxena, Senior Vice President (Sales & Marketing), Hyundai Motor India asserted, “We are exporting almost 66% of the cars that are being exported from this country.” This explains the importance and acceptability of Indian manufacturing. Volkswagen on the other hand has brought a massive investment of an incredible Rs.24.5 billion for its Pune plant. Honda Siel (HSCI) on its part has already announced a Rs.10 billion Jaipur unit. The Detroit duo GM and Ford has ambitious plans as well with the former already investing a whopping Rs.12 billion in its second plant at Pune. TATA’s investment of Rs.15 billion at Singrur for the production of the much hyped Nano has also been attracting attention for long. It seems that the players in the industry have realised the potential in the Indian auto market and have begun to take it very seriously. Discussing about the potential of the new plant Janeswar Sen VP, Marketing & Sales, HSCI avers, “North India comprises of 40% of the market in India, and hence the proximity to the biggest market has been a big consideration for us. This area is on the dedicated Rail freight corridor notified by the Government of India. Therefore we can expect good infrastructure and logistics facilities here.”
Interestingly, both Maruti Suzuki and HSCI have decided to open their plants in Manesar, Haryana and Rajasthan respectively (away from the present auto belts). Other than that, HSCI also has a plant at Greater Noida. Noticeably, India mainly has two renowned auto belts, one being in the reigon of Pune- Nashik- Auranagabad and the second in the southern part of the country. Interestingly, none of them came up with an intention to create such belts in that particular region but it happened automatically. The state governments tried to lure the auto players by giving tax-holidays and the rest followed. Moreover, the proximity to ports, supporting infrastructure and presence of other players was also an added advantage for these regions.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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