Tamil Nadu to become the hub of automotive sector in India

Tamil Nadu slowly and steadily is posing to be the hub of automotive industry. Already, there are names of many bigger brands which can be associated with this southern state of India. Besides Renault – Nissan and Ford,  the whole of tyre industry is situated over there. To add to this news the current chief minister of Tamil Nadu, M K Stallion, in one of the reports quoted that Tamil Nadu is very soon going to be the leader of automotive industry in India. Currently, Chennai alone is expected to have a capacity to manufacture 2.2 million vehicles every year. With such high estimates, undoubtedly the automotive industry is concentrating toward the southern edge of India.

To add to the wows of the automotive aficionados in India, the Tamil Nadu state government is currently drafting policies for the automotive sector which are called sector specific policies and is supposed to get ready by mid 2011. Also the state government is planning to adopt measures to help the automotive sector to grow in the state by attracting many investors. The reason behind such interest by the state in the automotive market is because this automotive market poses to generate high income and ultimately the overall growth of the state.

It seems that all the pieces are fitting in, as there are many new projects coming up which are expected to get their final shape by next two years. Beside Chennai, various other cities in Tamil Nadu will be a part of the various new and bigger plans. The plans which we are aware about are the Mahindra and Mahindra plant for over Rs 1800 crore and then the Rs 1000 crore Sundareshwar Alloy and Steel project, which is supposed to be a tractor manufacturing plant in Chennai. Also, the total capacity of the rubber and tyre industry in Tamil Nadu has grown over the few years and is still expected to exceed the 1600 metric tonnes per day.  With those plans and many more, Tamil Nadu is set to become the automotive hub of India.

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