By R. Natarajan, Managing Editor & Publisher
A recent study has revealed that the southern region, led by Tamil Nadu, is faring far better than the other regions in terms of industrial and investment growth. The report points out that Tamil Nadu has achieved 9.4 per cent growth in GDP as compared 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 vehicles and auto components. It is also the only State with facilities to manufacture the entire range of vehicles, from two-wheelers to heavy commercial 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. Jayalalithaa as Chief Minister, there has been a significant increase in investment flows into the auto sector. Of utmost significance is the signing of MoUs with Daimler, Yamaha Motors, Ashok Leyland-Nissan, Royal Enfield and Phillips Carbon. Overall, the State has attracted 27 major investment proposals with a cumulative 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 spending 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 uncertainties gripping the State. This has very well been reflected in the major flow of investments coming from the existing players like Volvo, Toyota Kirloskar and the Swedish truck maker, Scania, which has recently celebrated its ground-breaking ceremony. 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.