Friday, January 25, 2019

Global Investors Meet: Chennai hits fast lane to woo big investors, auto parts makers

With the appropriate eco-system available in the State, Chennai has reached the installed capacity to produce three cars in one minute and one commercial vehicle in every 90 seconds.

Published: 23rd January 2019 02:41 AM 



Representational Image (File Photo)
By Express News Service

CHENNAI: Chennai has earned fame as ‘Detroit of Asia’ but it seems the state government wants to strengthen its position in the sector by attracting more investments from automobile companies during the Global Investors Meet set to kick-off on Wednesday.

The state government claims in its TNGIM website that it is one of the top 10 global auto hubs with an annual installed capacity of 1.46 million units and it accounts for about 33 per cent of India’s auto parts production.

With the appropriate eco-system available in the State, Chennai has reached the installed capacity to produce three cars in one minute and one commercial vehicle in every 90 seconds. The overwhelming figures have boosted the state government’s confidence that they will manage to attract more investments in the sector during the GIM. Along with automobiles, the government is also striving to attract the auto components industries.

“Chennai’s auto component sector is likely to grow by 20 per cent annually and exports are likely to grow by over 30 per cent in the next five years. The state government wants to encash the opportunity. More investments will strengthen economy of the state and will help us generate more jobs for youths,” said an official associated with the GIM.

Tamil Nadu has the presence of over 100 major auto component manufacturers with an investment of 553.85 million dollar. The industry has an output worth 1.2 billion dollar and it directly employs about 45,000 people.

Besides, the government feels that availability of skilled manpower, reliable infrastructure like power, road, communication, water availability and waste disposal system, attractive incentive packages, strong auto-component base, good testing and certification centres will help them to bag more investments in the sector.

The state Cabinet has recently cleared the Hyundai Motors’ `7,000-crore proposed project to increase its production capacity in the state and develop electric vehicles also. Along with it, major auto manufacturers like Ford are all set to inaugurate their global research centre in Chennai. Experts feel all these factors will definitely help the state in bagging more investment in the sector.

“Tamil Nadu is already known as a hub of automobile sector and the players here are performing well. The success of the existing companies and the initiatives of the state government will surely attract pretty good investments during the second edition of GIM,” said M Ponnuswami, Chairman, CII Tamil Nadu state council.

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