Rajkot Auto Parts Industry to Witness 20 to 30% Growth in Wake of Auto Majors Looking at Gujarat to Set-up Shop

Following the entry of many auto manufacturers’s like Maruti and Ford soon, the auto parts industry in Rajkot will see a lot of growth in the spate of a few years. The manufacturers in Rajkot are expecting to see a growth of almost 20 to 30% in business. Following the entry of Tata Motors in Rajkot to manufacturer the Nano, the auto parts manufacturers in the area have seen a lot of growth in their business.

The Chairman of Maruti Suzuki, R.C. Bhargava visited the state, early this month, where the company showed a lot of interest in opening a manufacturing facility over here.

In the meantime, the Gujarat government is also in the end stages of talks with Ford that sought to buy a 550 acre plot at Sanand. The company is also almost set to enter the state. The city’s chamber of industry and commerce president, Dhanubhai Vora, said that this will surely lead to a growth in Rajkot’s auto parts industry. With auto giants such as Ford and Maruti showing interest in this state, the demand for auto parts will witness a rise. This industry may see a growth of above 30%.

Currently the auto parts industry in Rajkot has witnessed a growth of 15 to 20% per annum, according to industry sources. Rajkot has over 500 manufacturers of auto components with a total turnover of INR 150 crore.

Amul Industries, MD, Suresh Santoki, said that with the entry of such major auto manufacturers, the state will receive new investment, especially in the auto parts industry in Rajkot. One also cannot ignore the likelihood of other companies setting up units here as well.

Gujarat first came into the spotlight, when home grown manufacturer, Tata Motors made the decision to move their Nano project from West Bengal to Gujarat. Until then, GM was the only other major auto company to set up a base in Halol. Another home grown manufacturer, Atul Auto has operated in Rajkot for many years now.

Some of the units in Rajkot, have also expanded so as to keep up with the growing demand for Nano. For example, Amul Industries has invested around INR 25 crores for a new unit to be built in Sanand so as to supply auto components to the Nano plant. Santoki said that small players will need to become automated so that they can reduce the problem faced because of man power shortage.

As the state emerges as a centre for auto manufacturers, the business of auto parts manufacturers will only receive an added boost, also reducing the transportation cost significantly.

Unitec Engineers, MD, Upen Modi, said that the industry in Rajkot will witness growth as auto manufacturers begin operations in the state along with helping to increase business. Moreover, it wills reduce transportation costs. The industry will head towards automation so as to fight the manpower shortage issue over a long term. This company will also open a new unit by after investing INR 15 crore for meeting the demand.

From the 500 auto parts manufacturers in Rajkot, about 50 are OEM suppliers, whereas the remaining consists of small players that supply to retail markets. The auto parts industry in the city produces above 300 different auto parts and employs around 10,000 people.

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