Basic HTML Version
10
MOTORINDIA
l August 2012
Wind blowing southward
A recent study has revealed that the
southern region, led by Tamil Nadu,
is faring far better than the other re-
gions in terms of industrial and in-
vestment growth. The report points
out that Tamil Nadu has achieved
9.4 per cent growth in GDP as com-
pared to India’s GDP of 6.8 per cent.
In fact, with this stupendous growth,
the State has emerged the second
largest economy in the country, next
to Maharashtra.
Among the different factors that
contributed for the growth of Tamil
Nadu, the role of automobile and
auto component companies deserves
special attention. The State in fact
meets more than 35 per cent of the
country’s overall demand for vehi-
cles and auto components. It is also
the only State with facilities to man-
ufacture the entire range of vehicles,
from two-wheelers to heavy com-
mercial vehicles. Most of the leading
brands in the automobile industry
such as Ashok Leyland, Hyundai,
Ford, BMW, Daimler and Renault
Nissan consider Tamil Nadu as not
only a major hub for production but
also for export to far-flung regions.
Ever since the new Government
assumed office last year under the
able leadership of Ms. J. Jayala-
lithaa as Chief Minister, there has
been a significant increase in invest-
ment flows into the auto sector. Of
utmost significance is the signing of
MoUs with Daimler, Yamaha Mo-
tors, Ashok Leyland-Nissan, Royal
Enfield and Phillips Carbon. Over-
all, the State has attracted 27 major
investment proposals with a cumula-
tive investment of over Rs. 30,000
crores in the last one year.
The Tamil Nadu Vision Policy
2023 lays maximum emphasis on
world class infrastructure by spend-
ing four-five per cent of GSDP. It
also envisages 11 signature projects
which include development of
world-class Centres of Excellence in
at least 10 areas that act as nuclei of
innovation, and 2,000 km of 6/8 lane
highways.
As far as Karnataka is concerned,
the State continues attracting huge
investments from the automotive
sector in spite of political uncertain-
ties gripping the State. This has very
well been reflected in the major flow
of investments coming from the ex-
isting players like Volvo, Toyota
Kirloskar and the Swedish truck
maker, Scania, which has recently
celebrated its ground-breaking cer-
emony. The State is also a nerve-
centre of activities of global majors
like Bosch, Continental, Timken,
SKF, MANN+HUMMEL, etc., who
have set up their R&D centres.
w
current affairs
By R. Natarajan, Managing Editor & Publisher