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Why Gujarat can be India's biggest automobile hub
By Manish Manghnani
Flow
Introduction
Players
What they are doing?
Benefits
Opportunities
What attracts global and Indian
automakers to Gujarat?
The State Government provides tax benefits, in its industry
promotion policy.
Gujarat accounts for 17 per cent of India's total fixed capital.
More than 5000 acre of land acquried from the farmers
leaving around sanand for expansion purpose of automobile
companies. FP EDITOR SEP 8, 2011
What attracts global and Indian
automakers to Gujarat?
• India emerged as Asia’s fourth largest exporter of passenger
cars.
• Highest share of India’s total port cargo is handled at gujarat’s
ports(2011-12) - 37%
Initiatives
• The government also plans to set up an auto ancillary park for
Sanand district and a precision engineering park in Dahej.
• A Special Economic Zone for auto parts is also likely to be set
up in Kutch.
TATA NANO
• 2008: Mr Ratan Tata decided to relocate the Nano-car project
from Singur, West Bengal.
• Spread over 725 acres in sanand.
• Generates over 20000 direct and indirect jobs.
• Producing over 2,50,000 cars in first phase in future.
Maruti Suzuki India
• Maruti Suzuki India is in talks with the Gujarat government.
• Maruti along with vendors, could invest up to Rs 18,000
crore , producing 20 lakh units.
• Maruti Suzuki India (MSI) said the new 700-acre plant near
Mehsana will be set up in a phased manner with an initial
investment of Rs 4,000 crore by 2015-16.
• The plant in Gujarat will generate direct employment for over
2,000 people.
Hyundai
• Hyundai plans to build a diesel engine plant in Gujarat with
an installed capacity of 150,000 units per annum.
• Hyundai plans to invest Rs 400 crore (Rs 4 billion) for the
plant which will be operational by 2013-14.
• Hyundai officials have visited a site at Dholera.
Ford
• Ford had sought 550 acres from the state government to set
up a mother plant together with an ancillary park.
• Ford India will set up its manufacturing unit right next to
Tata Motors' Nano factory at Sanand.
• This would be Ford's second plant in India. It already has a
manufacturing unit in Maraimalai Nagar, Chennai, which has
an annual capacity of 200,000 units.
Why Ford selected Gujarat
• location as it offers ports for possible exports to western markets.
• Cost and logistics considerations, business environment and the State Government's “transparent and competitive” offers.
• “We took a lot of time and saw activity to zero in on Gujarat.”
(By Mr Michael Boneham, President and Managing Director, Ford India)
Global Automobile Major
PSA Peugeot Citroen
PSA PEUGEOT CITROEN returned to India.
Peugeot’s Sanand plant which will be 17th globally.
It plans to invest nearly Rs 4,000 crore in the facility and hopes
to start production by 2014.
It will provide direct employment to 5,000 people and indirect
employment to another 25,000 persons.
Construction work near Sanand is scheduled to begin this year
end and the project will be commissioned by 2014.
Secondary Companies
• Apollo Tiers was the first company to enter Gujarat in 1991.
• Investment of Rs 1400 crore (Rs 14 billion).
• Apollo's Gujarat plant at Limda is one of the largest units of its
kind in the South East Asian region.
• The Limda plant has the latest technological innovations.
Apollo Tiers
Ceat tyres
Ceat tyre laid the foundation stone at halol near Baroda
Investment of 700 crore in 125 acres and will produce 4
million tyre in first phase.
Company singed MOU at VGGIS in Ahemdabad on
January 13, 2012.
Employment expected about 1000 people.
Rajkot is a hub for the auto parts ancillary units.
70 per cent share in the Indian auto parts industry.
Registered a 15-20 per cent growth annually.
500 manufacturers of auto components.
Total turnover is INR 150 crore.
Growth In Rajkot
• The manufacturing sector forms the backbone of Gujarat's
economic growth.
• Experts point out that Gujarat needs to expand its vendor
base, improve accessibility and offer more scopes to attract
the big players.
• The auto ancillary hubs in Rajkot, Ahmedabad and
Vadodara play a vital role in further developing Gujarat
as an automobile hub.
Benefits
OPPORTUNITIES : SANAND
The presence of Tata Motors in Sanand has not only helped the
town replace its antiquated Chakdas with modern
autorickshaws.
It has also become a source of huge economic support to the
society and people at large.
New jobs in automobile hub sector.
Opportunities
• Maruti and Gujarat government have also decided to set up a state of
the art automobile research institute, the company said.
• Help India to develop a niche position globally and diversify its
export basket.
• Healthy competition among auto hubs.
• It would assist India in progressing towards the goal of increasing the
share of manufacturing in GDP from 16% in 2010 to 25% by 2022.
SOURCE : http://news.outlookindia.com/items.aspx?artid=764536
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