Chennai: Emerging Detroit of India?


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Known as the world's traditional automotive centre "Detroit" is a metonym for the American automobile industry.It was once called as auto manufacturing hub of the World,But then when everything was going fine U.S was hit hard by recession And the Big 3 had to bite the dust.

2008 was the time when the world understood the meaning of recession, Recession was the time when the whole world's economy was playing See Saw,That's the time when Asian continent posted a robust sales number month after month,It was prominent that the future sales number will be generated from BRIC nation's.

Coming to India, The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India reached as Asia's third largest exporter of passenger cars, behind Japan and South Korea beating Thailand.
The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster near Chennai is the biggest with 40% of the revenue share. The western hub near Maharashtra is 33% of the market. The northern cluster is primarily Haryana with 32%. Chennai, is also referred to as the "Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based.The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants in the area. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in Gujarat. Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.

This month Tamilnadu signed MoU's with 5 automobile majors entailing inflow of at least Rs 5,700 crore that would create 9,530 jobs.
The 5 auto major's name are as follows:
Daimler India Commercial Vehicles Pvt Ltd
India Yamaha Motor Ltd,
Ashok Leyland- Nissan Motor Company Ltd(Joint Venture)
Eicher Motors Ltd
Philips Carbon Black Ltd


In the global automotive arena Chennai is known as the Detroit of India.By no mean's it's a small feat, what makes Tamilnadu so attractive to auto manufacturer's?

Is it
-The proximity of being close to the port?
-The quality of manpower?
-The available infrastructure in the state?
-The incentives provided by the Government?

Please feel free to share your thought's,
 
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Re: Tamilnadu - The Detroit Of India

I think the reason behind that is its close to the port and quality of manpower. People are educated and need jobs there which is attracting more companies their and even the labor cost in TN is low compared to other places like Gujrat and Maharashtra.
 
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Re: Chennai - The Detroit Of India

I guess TN, Gujarat & Maharashtra are the leading states. WB would have got the Nano factory instead it has to make do with the languishing Hindustan Motors.
 
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Re: Chennai - The Detroit Of India

Maharashtra is loosing out in the recent times due to withdrawal of tax incentives,and Gujrat is being very pro-active in absorbing the auto maker's,Despite a tough fight from Gujrat, TN is winning all big ticket contract's.
 
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Re: Chennai is the Emerging Detroit of India

basically, the main places are indeed TN and Gujrat currently and are HOT PICKS by all manufacturers. Would like to see some plants coming up at Rajasthan and WB.
 
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Re: Chennai is the Emerging Detroit of India

Rajasthan already has Honda,WB has very bad anti-industry image
 
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Re: Chennai is the Emerging Detroit of India

Rajasthan already has Honda,WB has very bad anti-industry image
Rajasthan is a huge place and several more plants can be set up there.
For WB, thanks to Ms. Mamata di (don't know the surname properly).
 
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Re: Chennai is the Emerging Detroit of India

YashD, your location says your'e from kolkata & you aren't aware of our Mamata Banerjee's surname? She has been grabbing headlines all over India for various reasons. You are like a needle in a haystack my friend :) :)
 
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Re: Chennai is the Emerging Detroit of India

bro, most of the time I am in Delhi working. Sometimes Kolkata sometimes Delhi so maybe you think that but I don't like the way she is handling stuff in WB and all are politicians so don't care about them.
If they do any good for my country or improve it then I will surely respect them. Changing the street lamps doesn't mean she is doing good for the city. Anyways why are we arguing on politicians lets stick to the topic [:)]
 
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Re: Chennai is the Emerging Detroit of India

Yes Tamil Nadu/Chennai is as a popular destination for industry , even software for that matter, very less attrition and a good overall work ethic is what i have observed.

Gujarat is the emerging threat for all states in India, Modi has created such an environment it will be hard for anyone to neglect Gujarat, no where in India do we have a one shop approval system as we have in Gujarat, an enterpreneur doesnt need to run around multiple departments, the government manages approvals and its centralised. One of the fastest growing states in India now(apart from Bihar).
 
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Re: Chennai is the Emerging Detroit of India

Yes Tamil Nadu/Chennai is as a popular destination for industry , even software for that matter, very less attrition and a good overall work ethic is what i have observed.

Gujarat is the emerging threat for all states in India, Modi has created such an environment it will be hard for anyone to neglect Gujarat, no where in India do we have a one shop approval system as we have in Gujarat, an enterpreneur doesnt need to run around multiple departments, the government manages approvals and its centralised. One of the fastest growing states in India now(apart from Bihar).
Very true Gujarat is seriously emerging as a major threat to other state, you have to give it to Modi for his work it's just not automobile even agricultural produce is also going up YOY.
 
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Re: Chennai is the Emerging Detroit of India

The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants in the area. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster
Pune is still detroit of India.
Good to see that new plants are going to other states. There should be good development in those regions now. Actually more plants should move to UP,Bihar, Himchal , so that people will get jobs.
 
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Re: Chennai is the Emerging Detroit of India

Pune is still detroit of India.
Good to see that new plants are going to other states. There should be good development in those regions now. Actually more plants should move to UP,Bihar, Himchal , so that people will get jobs.
The only problem with places like Bihar is the shortage of skilled manpower and the required infrastructure.
 
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Another great news for Chennai, Renault-Nissan is going full throttle with its expansion plans in India and is aiming to double its production to 8,00,000 cars at its Chennai plant by 2015-16, Which mean's more investment and more jobs for the local.

Nissan India's managing director Takayuki Ishida told ET, "We have increased the production capacity from 200,000 units per year to 400,000 from April, 2012. As demand increases in local and export markets, we keep exploring options of expanding the business."

Source:
Renault-Nissan to double output to 8 lakh units by 2015-16 - The Economic Times
 
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