Sanand Auto Industry Thread [Archive]

GJ10

September 1st, 2011, 10:29 PM

Ford

Ford to invest $1bn in Gujarat plant (http://www.ft.com/cms/s/0/02dd03b0-b859-11e0-8d23-00144feabdc0.html#axzz1TM04vmCg)

Ford will announce plans today to invest $1bn to build a factory in western India in a drive to gain a greater share of one of the fastest-growing car markets.

The factory in Gujarat, which should be in production by 2014 employing 5,000 people, is expected to have an initial annual capacity of 240,000 vehicles, said Joe Hinrichs, head of Asia-Pacific and Africa. This is more than double the capacity of the US carmaker’s facility in the southern state of Tamil Nadu.

The Gujarat plant, close to the factory where Tata, the Indian conglomerate, builds the Nano, the world’s cheapest car, will be built on a 430-acre site and include a plant producing up to 270,000 engines.

Ford’s largest single investment in India follows the success of its India-built Figo model, which helped the group nearly triple its sales last year. The Detroit carmaker plans to introduce eight models in the market by mid-decade.

Mr Hinrichs said: “When you look at the combination of the Figo’s success last year … with all the product investments we have coming into the industry … and with the new [$1bn] investment going into Gujarat you can see Ford’s commitment to our growth here in India. [This is] really a bet on our future here in India but also a bet on the auto industry’s future in India.”

Ford estimates the Asia-Pacific region will account for 45 per cent of global light vehicle sales in 2020, up from 42 per cent last year and 21 per cent at the start of the decade.

Deepesh Rathore, managing director for India at IHS Automotive, said: “Most of Ford’s two decades in India were pretty uneventful. However, over the past five years the group has stepped up its game and the success of the Figo has given them confidence to try to move in to the mainstream market … this is the right time to expand.”

India’s car sector has been growing at record levels over the past three years and in spite of a recent slowdown is expected to keep on growing between 10-15 per cent in the next five years.

Ford, which has increased sales among India’s urban middle class, aims to boost sales in emerging second- and third-tier cities, such as Amritsar and Srinagar in the north.

The $1bn investment will be one of the biggest made by a big US company in Gujarat, which was chosen for its pro-business reputation and investment in infrastructure. It has been one of the most successful Indian states in attracting foreign investment, partly attributed to its efforts against corruption.

However, the choice is likely to be politically sensitive as Narendra Modi, Gujarat’s Hindu nationalist chief minister and main architect of the state’s economic revival since 2001, has been criticised for his lax role during the 2002 communal riots when at least 2,000 people, mainly Muslims, were killed.

Mr Hinrichs declined to comment on Mr Modi’s political reputation. He said Gujarat was selected over other states for its geographical location and ports from which to export cars to other emerging markets. Ford ships the Figo from India to 50 other countries, including South Africa, Mexico and the United Arab Emirates.

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GJ10

September 1st, 2011, 10:35 PM

Peugeot

PSA Peugeot-Citroen inks pact for 4000 Cr Sanand facility, to employ 5000 people (http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/peugeot-citroen-inks-pact-for-sanand-facility-to-employ-5000-people/articleshow/9823581.cms)

French car-maker PSA Peugeot Citroen said it will create 30,000 direct and indirect jobs in Gujarat after it starts production in 2014. The company signed an agreement with Gujarat goverment on Thursday to produce 1.65 lakh cars per annum from the Sanand facility proposed to come over 600 acres.

Peugot Citroen has 16 manufacturing facilities worldwide and the Rs 4,000-crore Gujarat plant will be its 17th. The company will export 25% of the production from the Sanand facility. Peugeot is the third auto MNC to invest in Sanand after Tata Motors and Ford Motors in the last three years.

Tata announced in October 2008 that it set up a mother plant of its ultra-small car Nano at Sanand with an investment of Rs 2,200 crore. In July 2011, Ford Motors signed a memorandum of understanding (MoU) to set up a facility with an investment or Rs 4,000 crore. General Motors was the first auto MNC to invest in Gujarat at Halol in 1996.

Facilities of the three new entrants are adjacent to each other in the Northkotpura area which was under Anand Agriculture University till October 2008. A release said: "The project will give direct employment to 5,000 people. Additional jobs will be created by supplier park adjacent to the site to provide the company with necessary parts and services." The government said, 25,000 jobs will be created in the supplier park coming up adjacent to the main plant.

American car-maker Ford Motors announced in July that its Sanand facility will create 30,000 direct and indirect jobs. Country's largest car-maker Maruti Suzuki is yet to sign any formal agreement with the state government to locate its first facility outside Haryana, but its chairman RC Bhargav said the project will create of 1.5 lakh jobs when the facility in Gujarat becomes functional in five years. Maruti plans to produce 20 lakh cars in Gujarat in phases.

"We are proud to announce Peugeot's continued global expansion and to have chosen to grow our Indian roots in Gujarat. We view India as one of the most important and dynamic markets in the world, with forecasts of it becoming the third largest automotive market by 2020. Gujarat offers a proactive business friendly environment, excellent infrastructure and is geographically well-positioned to cater to passenger car markets across India," said a company press release quoting Philippe Varin, the chairman of the managing board of PSA Peugeot Citroen.

A State Support Agreement (SSA) to this effect was signed in the state capital Gandhinagar between the company. Tamil Nadu and Andhra Pradesh were also in the contention for the project.

The first locally-produced Peugeot car is expected in 2014. As a part of SSA, the car-maker will also set up an Automotive Skills Development Institute (ASDI) to provide the skilled manpower for the industry. The centre will be of international standards will be jointly set up by the government of Gujarat, Gujarat Industrial Development Corporation (GIDC) and Peugeot on Public Private Partnership (PPP) mode. The GIDC has earmarked 25 acres of land for the purpose.

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GJ10

September 1st, 2011, 10:38 PM

X-posted from Gujarat projects thread, article written before Peugeot deal finalised :cheers:

Summary of all the potential Auto projects + existing/announced ones.

Auto firms looking closely at Gujarat (http://www.livemint.com/2011/07/28230450/Firms-looking-closely-at-Gujar.html?h=B)

• PSA Peugeot Citroen SA is in advanced negotiations with state government to set up a plant, preferably around Sanand. The French car maker aims to invest around Rs4,000 crore in a new facility with a capacity to produce 300,000 units a year

• Maruti Suzuki India Ltd’s top officials recently announced their plans to invest Rs6,000 crore for setting up a car manufacturing plant with a capacity of one million units per annum

• Senior officials of Bajaj Auto Ltd are planning to meet chief minister Narendra Modi to explore the option of setting up a two-wheeler manufacturing facility at Kutch. The factory, with an annual production capacity of around five million units, will require an investment of Rs1,000 crore

• Hindustan Aeronautics Ltd is in talks with the state for setting up a Rs4,000 crore project for design, development, manufacture, repair and overhaul of aircraft, aero engines and helicopters

Major investments so far in Gujarat’s auto sector

• General Motors India Pvt. Ltd has invested Rs2,000 crore in its plant at Halol in Vadodara and is in the process of investing around $250 million (around Rs1,100 crore) more

• Tata Motors Ltd has invested Rs2,900 crore for its Nano plant in Sanand

• Bombardier Transportation India Ltd. has invested Rs207 crore to set up its wagon manufacturing plant at Savli in Vadodara district

• CEAT Ltd, the flagship company of RPG Enterprises Ltd setting up a tyre making facility in Halol with an estimated investment of Rs1,500 crore

• Asia MotorWorks Ltd, manufacturer of heavy commercial trucks has invested Rs1,400 crore to set up its factory at Bhuj with an annual capacity of 50,000 vehicles

• Apollo Tyres Ltd has invested Rs2,000 crore to set up tyre manufacturing facilities in Limda in Vadodara district

• Atul Auto Ltd, a Rajkot based three-wheeler company has invested Rs63 crore for setting up a 24,000 per annum capacity in Shapar near Rajkot

• Electrotherm (India) Ltd has set up a electric two-wheeler manufacturing facility in Ahmedabad with a installed capacity of 250,000 unit-per annum. The company sells the electric bikes under the brand name Yo Bykes. The company is also developing an electric 3 Wheeler and a hybrid Electric Bus

In terms of Cars, currently:

GM Halol = 85,000 units pa (being expanded to 110,000 units)
Tata Sanand = 250,000 units pa

Upcoming in 2014:
Ford Sanand = 240,000 units
Peugueot = 165,000 units (expandable to 340,000 units at a later stage)

GJ10

September 1st, 2011, 11:06 PM

Sanand now in Auto-hub league (http://www.business-standard.com/india/news/sanand-now-in-auto-hub-league/447829/)

Come 2014, Sanand, a small town around 40 kms from Ahmedabad, will be a name to reckon with in the country’s automotive sector. Following the re-entry of French car maker PSA Peugeot Citroen, the erstwhile sleepy town — already home to Tata Motors’ manufacturing plant for small car Nano — finds itself along the country’s prominent auto hubs like Pune in Maharashtra and Sriperumbudur in Tamil Nadu.

In July, US-based Ford Motors had signed a deal with the state government for setting up a car manufacturing plant in the same town. “By 2014, Sanand will be a big auto hub in the range of Chennai and Pune. The Gujarat government had been focussing on Sanand to develop it as an auto-engineering hub because of its proximity of Ahmedabad,” said B B Swain, vice-chairman and managing director, Gujarat Industrial Development Corporation, which has allotted land to Ford and Tata Motors.

Car makers have shown preference to Gujarat over other states due to its geographical advantage and infrastructure. By 2014, Sanand is likely to have an installed capacity of 655,000 cars annually after the two plants become functional.

Of these, Peugeot, of a total planned capacity of 340,000 units in phases, is aiming for an initial installed capacity of 165,000 cars a year by 2014. Ford India will also commission its car manufacturing facility by 2014 with a capacity of 240,000 units annually.

According to the projections by car makers, Gujarat would have a manufacturing capacity of 765,000 cars per annum by 2014. This includes the existing capacities of Tata Motors’ Nano plant with 250,000 cars per annum and General Motors’ plant in Halol with 110,000 cars annually.

Philippe Varin, chairman of the managing board, PSA Peugeot Citroën, attributes three reasons for choosing Sanand for its plant. “Availability of greenfield land and ready infrastructure are a couple of reasons for us to choose Sanand for the plant. Moreover, it is the enterprising nature of Gujarat that attracted us to the state.”

In addition, with General Motors expanding existing capacity at its plant in Halol, Gujarat would be put onto the auto map of India with a total installed capacity of 765,000 cars per annum by 2014. This assumes importance when Tamil Nadu’s annual installed capacity is pegged at 1.28 million cars, while that of Maharashtra (most of which are in Pune) stands at 610,000 units.

“Gujarat has a proactive administration. With respect to the auto industry, Gujarat also enjoys a huge supplier base which makes it one of the emerging auto hubs in India after Chennai, Talegaon and Chakan in Pune. After north India, western India has the second-largest supplier base with respect to the auto industry,” said P Balendran, vice-president, General Motors India.

What’s more, going forward, if Maruti follows the foot-steps of global auto giants, then days are not far that Gujarat would command car manufacturing industry in the country with a staggering installed capacities of close to over 1.7 million cars per annum. This would pip Tamil Nadu (TN)’s numero-uno status for car manufacturing in India and put Gujarat in the distinct club of top 10 centres in the world for car manufacturing.

Meanwhile, as per the figures provided by Society of Indian Automobile Manufacturers (SIAM), India’s total passenger vehicle production stood at 2,987,296 units for for 2010-11.

R2IChennai

September 2nd, 2011, 01:56 AM

Sanand now in Auto-hub league (http://www.business-standard.com/india/news/sanand-now-in-auto-hub-league/447829/)

TN threads are burning...
Congrats Sanand anyways

chennaidesi

September 2nd, 2011, 02:28 AM

Thats o.k.
Please come to TN to recruit talent for Auto Industry:cheers:

UMANGSHUKLA

September 2nd, 2011, 03:14 AM

Thats o.k.
Please come to TN to recruit talent for Auto Industry:cheers:

Well, check the facts dude! Students from Nirma University, Ahmedabad are placed in TATA Motors, M&M, TVS every year. So do the other colleges in Gujarat. There is plenty of Talent in Gujarat. I myself am a mech engg graduate from Nirma University 2008 batch.

meetmus2fa

September 2nd, 2011, 12:54 PM

Instead of Sanand auto industry thread rename to Gujarat Auto Industry...

Please not that General motor plan is already set up near Baroda and there is Atul Auto industry also

NitinPatel

September 2nd, 2011, 02:23 PM

Instead of Sanand auto industry thread rename to Gujarat Auto Industry...

Please not that General motor plan is already set up near Baroda and there is Atul Auto industry also

+1

GJ10

September 2nd, 2011, 07:29 PM

Instead of Sanand auto industry thread rename to Gujarat Auto Industry...

Please not that General motor plan is already set up near Baroda and there is Atul Auto industry also

This thread is only made from the point of view of keeping Sanand Auto News in one place, these 3 companies alone will make it an Auto Hub by 2014.

Obv you are correct in saying that GM is in Halol and the Ancillary Auto Parts Industry are mainly in and around Rajkot District. But still, imo, the big investments in Sanand alone seemed worthy of creating a thread.

Will have to see what Maruti-Suzuki and Bajaj-Renault decide too, maybe after seeing Ford and Peugeot they will also decide on Sanand rather Mundra/Santalpur in Kutch which seemed to be the preferred locations for those companies.

For the sake of making this forum more useful, I think we need a lot more threads in the Gujarat sections to give better coverage probably will have to be by districts/industrial areas rather than "Cities" however. Kutch Dist, Bharuch Dist for sure, maybe Jamnagar Dist, Panchmahal Dist (Halol-Kalol). Hazira within Surat section too.

meetmus2fa

September 2nd, 2011, 09:28 PM

3 September, 2011

Mint report says that Hero MotoCorp Ltd (HMCL) (earlier Hero Honda) plans to set up its manufacturing facility in Gujarat as per a report by a Mumbai-based brokerage quoting the company’s chairman Brijmohan Lall Munjal.

“The Gujarat plant will mostly serve export markets. The company will start exporting two-wheelers to new markets from the next quarter. ” analysts Jinesh Gandhi and Mansi Varma wrote in the report quoting Munjal. HMCL is looking for financial and infrastructure incentives for the new plants.

“It (Hero) has identified Africa, South-East Asia and Latin America as key markets for exports, and expects to start exporting to some countries in Africa by 3QFY12 (third quarter of fiscal year 2012). It targets export volume contribution of 10% (of its total sales) over the next 5-6 years…,” the Motilal analysts wrote. “HMCL’s teams have visited these potential markets and are getting encouraging response from the local distributors.”

Source - http://deshgujarat.com/2011/09/03/hero-motocorp-ltdhmcls-next-manufacturing-plant-in-gujaratreport/

GJ10

September 3rd, 2011, 02:22 PM

Peugeot-Citroen gets offers similar to Tatas Nano project in Gujarat (http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/peugeot-citroen-gets-offers-similar-to-tatas-nano-project-in-gujarat/articleshow/9845772.cms)

It's the unseen rather than the seen that is luring global automotive industry to Gujarat. As it now emerges, it was the fine-print in the MoUs than the strategic advantages that pulled off the hat-trick for the state swinging automakers like French PSA Peugeot Citroen, American Ford and Indian Tata Motors its way in the last three years.

"Incentives are a major determinant for a new project. I would doubt if anyone would come to a state without the lure of incentives," asserts Anirudh Bhuwalka, MD and CEO of Asia Motor Works, a commercial vehicle manufacturer, who selected Gujarat over Chennai and Pune in 2006 to invest Rs 1,400 crore.

Offers made by the state to attract investments are not in public domain but they indeed form the backbone of a state's pitch, goes the industry belief.

Vishnu Mathur, director general of Society of Indian Automobile Manufacturers too says incentives play an important role in the breakthrough. Apart from the central taxes, everything else like the land and local taxes are in the jurisdiction of the state," he added.

For the latest entrant, Peugeot, Gujarat government offered a soft loan of Rs 4,000 crore to be paid after 15 years, a senior government official said. He added that the terms were similar to those extended to Tata's Nano project three years ago, but a little different from Ford that announced to set shop in July. Ford proposed an interest refund model which was accepted by the government, the official said.

In case of Peugeot, the company will have to invest initially, start production and then avail of loan on the basis of net tax paid. As the production increases, they will get loan at a nominal rate (0.1% in case of Tata) agreed with the state government. The cost of 580 acres of land works out at Rs 305 crore at the rate of Rs 1,300 per square metre, and the loan value (at the assumed rate of 6% CAGR) sums up to Rs 10,161.41 crore. This is the company's benefit, a chartered accountant said.

Five years ago, Gujarat had handful players like General Motors, AMW and Apollo Tyres. Today, armed with the latest entrants it plans to compete with existing auto hubs like Chennai, Gurgaon and Pune.

Pitching itself as an aspiring Detroit of Western India, Gujarat won half the game.

"The writing is on the wall. Gujarat's industrial climate is best among the four regions. Although it is not an automotive hub at the moment, it has created the basic eco-system to create an auto hub that is luring the auto industry," adds Bhuwalka of AMW.

Incentives notwithstanding, Gujarat's history of favourable industrial climate, good infrastructure, and port connectivity are the major draws for any automaker at this point in time.

G Raghuram, faculty at the Indian Institute of Management-Ahmedabad specialising in infrastructure and logistics management, reasons: "The industry perceives a sense of comfort in Gujarat that aspires to be an auto hub. That is far greater than established hubs that are perhaps, even saturated. Gujarat is putting its best foot forward to make things happen in the sector and that is giving lot of confidence to the industry."

In case of Tata, the state incentivised the Nano project and charged just Rs 900 per square meter for 1100 acres that finally cost Rs 400 crore to Tata. To keep allegations of favouritism at bay, the state has since then institutionalised incentives for mega projects entailing investment of anything above Rs 1,000 crore, government officials say.

In case of Ford, it was Rs 1,200 per square meter for 400 acres, which translates into roughly Rs 225 crore land cost.

State Congress chief Arjun Modhwadia had in January 2009 alleged that the state offered Tatas loans that were 330% over and above the total project cost, amounting to Rs 9,570 crore. This loan, according to the government order, was to be repaid by the Tatas only after 20 years at a mere 0.1% interest. "Thus, Tatas will enjoy this huge interest-free loan for 20 years, meaning a loss of Rs 22,289.75 crore to the treasury," he said. "We are not against any industry, but a loss of Rs 22,289.75 crore to the treasury is unjustified," he says. Despite this, Congress has largely remained muted in its opposition.

Gujarat swept Tata off its feet by not just offering the concessions, but allocating 1100 acres without a hitch, enabling Nano's relocation in lightning speed within four days of Tata announcing Singur withdrawal on October 3, 2008. That made Tata Nano synonymous with Modi, who in 2009 went on to proclaim that the state would be the next auto hub by 2014.

While Ratan Tata quoted: "One would be stupid to not be in Gujarat" making global carmakers take a holistic view of Gujarat, it also made the world inquisitive about what was behind the dotted lines.

"The moment the industry realised that Modi is strongly backing Tata Nano project for using it as an anchor company and attract others, no one dared challenge it," a state Congress leader says.

Criticisms galore, but Gujarat now eyes for Maruti Suzuki, Hero MotoCorp Ltd. and Bajaj Auto. Bullish on India that is set to be the third largest market by 2020, auto companies sense logic by being in Gujarat.

Raghuram says with the cost of inbound logistics (auto components) more than outbound logistics (a finished car), Gujarat is becoming an obvious choice for many players. "Considering the industry can readily source components from the state and also transport the products faster to major markets like Mumbai and Delhi, Gujarat is emerging as a preferred location for the auto industry," he reasons.

Chevrolet-maker General Motors, the first OEM to come to Gujarat much before the era of incentives began, perceives pro-active governance of Gujarat as one of the biggest draws for the industry.

"Incentives are considered only after a state is able to meet the criterion of pro-active governance, good infrastructure, uninterrupted power-supply, supplier base, port facilities, availability of skilled workforce, good market for the products and synergy between plants," says GM India's P Balendran of the hullabaloo over incentives. GM India has so far invested Rs 2,000 crore in Halol and would undertake additional investments for expansion.

Auto vendors believe that Gujarat offers distinct advantages over its peers. Jayant Jamuar, director of Rajkot-based Kadvani Forge said, "The industrial climate, availability and quality of power, proactive governance and incentives offered in terms of taxes and land cost are the factors that may have tilted the decision in favour of Gujarat. Moreover, Sanand is close to international airport and ports, and many vendors have already started production for Nano. So this will be a advantage for the new comers," he said.

If the Detroit auto cluster had 2.13 lakh people working for the likes of GM, Ford and Chrysler during its peak times of early 2000s, Gujarat as the auto hub in the new millennium will have an estimated 8 lakh people working by 2015.

The state currently manufactures 6 lakh cars, 48,000 three-wheelers, 50,000 trucks and 2.5 lakh e-bikes every year. Experts say production of one car helps five persons earn their livelihood and by those estimates and the way carmakers come calling, the state is on full-throttle.

Firstly, I think they have included Ford/Peugeot to get to 6lakh car total.. but thats besides the point.

Realistically, it is the massive employment creation (for manual labour class people), as well as PR of having these big names and the added business for the Ancillary SMEs/Ports who will supply the Auto majors which will give the widest ranging benefit for the state.

Really hope the media stop asap with this whole "Detroit of..." business

Sanand is Sanand and we should want the world should learn its name. :cheers:

meetmus2fa

September 3rd, 2011, 03:26 PM

Ahmedabad, 3 September 2011

Vadodara

Canadian firm Bombardier manufactures railway wagons in its state-of-the-art facility near Vadodara. Delhi metro train’s wagons are made in Bombardier’s Gujarat facility.

Halol

General Motors hast its one of the two car manufacturing units of India at Vadodara district’s Halol. This was the first important automobile plant in Gujarat. It was established here back in 1990s.

Ceat tyres has radial tyre plant at Halol.

Sanand

Nano car manufacture plant of Tata Motors is situated here.

By 2014 American automobile company Ford and French auto giant Peugeot will also start manufacturing at Sanand.

Maruti is also scouting for land to set up its manufacturing facility in Sanand.

Similarly Hero and Bajaj have hinted their intentions to set up manufacturing facilities here.

Rajkot

Rajkot is the hub of the automobile parts manufacturing industry.

Rajkot based Atul Auto is leading manufacturers of 3 wheeler commercial vehicles, goods carriers, passenger carrier, pickup vehicle.

Samkhiyali

OREVA (Ajanta Manufacturing Limited) has its e-bike manufacturing plant at Samkhiyali in Kutch district. Similarly Ahmedabad based Electrothrum India’s Yo Bike manufacturing plant is also situated in Samkhiyali.

Bhuj

Asia Motor Works (AMW) has heavy duty truck manufacturing plant near Bhuj.

Mundra

Adani’s Mundra port has Auto export terminal. Thousands of Maruti Suzuki cars have been already exported from India through this facility.

Source - http://deshgujarat.com/2011/09/03/gujarat-on-way-to-become-a-new-automobile-industry-hub-of-the-region/

NitinPatel

September 5th, 2011, 02:17 PM

Ford kicks off construction of Sanand car plant (http://deshgujarat.com/2011/09/05/ford-kicks-off-construction-of-sanand-car-plant/)

http://img.carwale.com/ec/7964/img/m/7964_l.jpg

Ford India officials today performed a ground breaking ceremony for its new, state-of-the-art integrated car manufacturing facility in Sanand, Gujarat.

Ford is investing approximately USD 1 billion to build new vehicle manufacturing and engine plants in Gujarat. The new manufacturing facility will create 5,000 jobs, and will be able to initially produce 240,000 vehicles and 270,000 engines per year. The first vehicles and engines are scheduled to come off the line in 2014.

“With this groundbreaking, Ford is planting the seeds for a prosperous future in Sanand for our future employees, suppliers, dealers and customers. As good corporate citizens we will be first-rate stewards of this land and active participants in this community,” said Michael Boneham, president and managing director, Ford India.

“Today is another milestone and reinforces our commitment to aggressively grow the Ford brand in India and offer a full range of exciting, fuel-efficient vehicles to Indian customers,” he added.

IndiansUnite

September 6th, 2011, 11:40 PM

Ford plant site:

Copyright Getty Images
http://img703.imageshack.us/img703/4179/800xac.jpg
An Indian child walks on a plot of land acquired by Ford India for its new automobile manufacturing plant near Sanand, some 60 kms from Ahmedabad, on September 5, 2011. US auto giant Ford said in July it would invest 1 billion USD to build a second vehicle assembly and engine plant in India as it ramps up production to exploit the country's burgeoning car market.

IndiansUnite

September 6th, 2011, 11:58 PM

A map for folks who don't know where Sanand is:

http://img846.imageshack.us/img846/4458/sanand1.jpg

Location of the 3 plants:
http://img62.imageshack.us/img62/2195/sanand2.jpg

kp.muthu99

September 7th, 2011, 12:11 PM

Just after getting 3-4 automobiles a place cant become auto hub ,
it will take 10 year or more to become a auto hub

Thats o.k.
Please come to TN to recruit talent for Auto Industry:cheers:

UMANGSHUKLA

September 7th, 2011, 02:19 PM

Just after getting 3-4 automobiles a place cant become auto hub ,
it will take 10 year or more to become a auto hub

Detroit became an auto hub becoz of the big three
1. GM
2. Chrysler
3. Ford

UMANGSHUKLA

September 7th, 2011, 04:04 PM

In the face
Source (http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/osamo-suzuki-to-meet-narendra-modi-tomorw-may-finalise-msi-plant-in-gujarat/articleshow/9898552.cms)NEW DELHI: Japan's Suzuki Motor Corporation Chairman Osamo Suzuki will meet Gujarat Chief Minister Narendra Modi tomorrow in order to finalise setting up of its Indian arm Maruti Suzuki's manufacturing plant in the state.

According to sources, Suzuki will be meeting Modi in Ghandhinagar after attending the annual general meeting of Maruti Suzuki India (MSI) here. He will be accompanied by MSI Chairman RC Bhargava, Managing Director Shinzo Nakanishi and Production Head M M Singh.

Earlier in May, MSI had said it, along with vendors, could invest up to Rs 18,000 crore in Gujarat as it looks to produce about 20 lakh units in the long run in the state.

Although the company has said Gujarat will be a strong possibility for its next plant, the source said as it is as good as finalised.

The company is seeking about 1,000 acres of land from the Gujarat government for its next plant, the sources said.

The company has already invested in developing infrastructure at Mundra port from where it exports A-star to Europe.

Maruti Suzuki's move to look for a location in Gujarat comes at a time when it is looking to have a market share of 50 per cent in the Indian passenger vehicle segment, which is expected to be 4.5 million-5 million units per annum by 2015.

The company has recently started partial production at its second unit at its Manesar plant while the third unit is being set up.

By 2012-13, the company will have a total capacity of 1.75 million units per annum from its Manesar and Gurgoan facilities put together.

The company has a medium term investment plan of Rs 6,000 crore in Haryana for adding additional capacity at the Manesar facility, including expansion of engine production and development of a test course in Rohtak

vibrant

September 7th, 2011, 05:05 PM

Deleted

Aditya Jadeja

September 8th, 2011, 06:43 AM

Just after getting 3-4 automobiles a place cant become auto hub ,
it will take 10 year or more to become a auto hub

I think 10 yrs is way too long...In just 2 - 3 years we will be having two massive car manufacturing units along with their ancillaries ready to go in Sanand itself...!! Hero group may too base up at Sanand but that remains to be seen...So my take within is 4 -5 years the whole scenario will change

Its good that Maruti is going to Northern Gujarat as it will really help in developing that area which has been off the developmental radar in terms of industries in Gujarat till now...!!

However , the influx of migration needs to be checked as it wont take long for unscrupulous elements to base themselves there too...!!

MeMumbaikar

September 8th, 2011, 10:46 AM

UMANGSHUKLA

September 8th, 2011, 12:38 PM

hmm google maps tells me its about 27 km from the centre of Ahmedavad.......

any transport projects to have an express-way linking the two? like similar to express way between Delhi and Gurgoan?

Seems like Ahmedabad's version of Gurgoan.

Actually if u have ever been to gujarat, all major roads out of ahmedabad are express roads

MeMumbaikar

September 8th, 2011, 01:34 PM

Actually if u have ever been to gujarat, all major roads out of ahmedabad are express roads

highways or express ways

ie are they access controlled?

UMANGSHUKLA

September 8th, 2011, 02:10 PM

highways or express ways

ie are they access controlled?

Towards Baroda,Surat, Mumbai its NE-1 Express Higway
Towards Sanand, Rajkot its a NH -8A National Highway, Towards Gandhinagar, Himmatnagar, Udaipur its NH-8:bash:

jay garvi gujarat

September 8th, 2011, 05:57 PM

Gujarat is one of the states on the radar of Maruti Suzuki for setting up a million-car manufacturing facility. A team of officials led by Suzuki Motor Corp chairman Osamu Suzuki, MSIL chairman RC Bhargava and MSIL MD S Nakanishi on Thursday met Gujarat chief minister Narendra Modi and state
officials in Gandhinagar.

"A final decision regarding a new faciltiy will be taken by October-end," Bhargava told reporters after the meeting."A new facility will be spread in 500 acre area in addition to a vendors' park in another 500 acres. Gujarat is one of the options the company is exploring."

Also on the radar are Maharashtra and Karnataka, he said.

Sources told HT that MSIL has shortlisted 3-4 locations including Mundra SEZ.

MSIL has a long term tie-up with Adani group, developer of Mundra port and SEZ, for exporting cars from its dedicated car terminal.

MSIL is the latest in a string of auto-makers willing to invest in the state, which has emerged as the preferred destination after tata Motors shifted its controversial car project Nano from West Bengal to Gujarat.

Last month, French giant Peugeot inked an agreement with the Gujarat government to set up a manufacturing plant with investment of Rs 4,000 crore in Sanand, which is fast emerging as the top auto hub in the state.

In late July, American automaker Ford Motors signed a deal with the Gujarat government for setting up its second plant in India at Sanand where the company has recently commenced its works.

The Ford has commited investment of Rs 45,00 crore in the state.

Both Peugeot and Ford have planned to commission their units by 2014.http://www.hindustantimes.com/Gujarat-for-maruti-plant/Article1-743273.aspx

jay garvi gujarat

September 8th, 2011, 06:03 PM

http://www.moneycontrol.com/news/business/suzuki-board-to-decidemarutis-gujarat-plantoct_584253.html
Japan's Suzuki Motor Corporation today said its board will take a decision in October regarding the setting up of a manufacturing plant in Gujarat for its Indian arm Maruti Suzuki India (MSI).

Speaking to reporters after meeting state Chief Minister Narendra Modi, (SMC) Chairman Osamu Suzuki said: "Considering all the discussion held with Chief Minister, we are planning to take the decision and get it approved in SMC board.

"... Then we will think (whether) to apply for land or not, this decision will be taken in October end."

Earlier in May, MSI had said it, along with vendors, could invest up to Rs 18,000 crore in Gujarat as it looks to produce about 20 lakh units in the long run in the state.

The company is seeking about 1,000 acres of land from the Gujarat government for its next plant, according to industry sources.

The company has already invested in developing infrastructure at Mundra port in Gujarat from where it exports A-star to Europe.

Suzuki was accompanied by MSI Chairman RC Bhargava, Managing Director Shinzo Nakanishi and Production Head M M Singh in the meeting with Modi.

Bhargava said Suzuki wanted more information about the land and the likely the risks involved.

"All this and whatever further investigations we need to make for the plant will be collected in next few days," he said, adding Modi assured full cooperation to the company to facilitate setting up of the plant in the state.

"This was the first meeting between the Chief Minister and Suzuki and the meeting was very cordial and positive. The CM has assured full co-operation," Bhargava said.

NitinPatel

September 8th, 2011, 07:46 PM

maulik02

September 8th, 2011, 08:10 PM

DELETED..

UMANGSHUKLA

September 8th, 2011, 08:26 PM

MeMumbaikar

September 8th, 2011, 10:13 PM

bhaio TRAN COMPANY PACHHI CHOTHI NA SAMACHAR VANCHI NE CHENNAI થ્રેડ NA BHUKAMP AAVI GAYO CHHE, KHABAR NAI A LOKO EMNI BHASA MA SU GHUS PUS KARE CHHE HU TO FAKT MODI ANE GUJARAT VANCHI SAKU CHHU

i doubt the people from chennai wish ill on Guj

Its healthy competition.

India will need about 10 million auto-mobiles per year based on projections based on 2.3 million today.

One place obviously cannot produce so many cars. We needs 5-6 districts producing 1 million cars or so.

MeMumbaikar

September 8th, 2011, 10:14 PM

Towards Baroda,Surat, Mumbai its NE-1 Express Higway
Towards Sanand, Rajkot its a NH -8A National Highway, Towards Gandhinagar, Himmatnagar, Udaipur its NH-8:bash:

hmm might be wise to convert that part of NH8 highway to an express way

UMANGSHUKLA

September 8th, 2011, 10:54 PM

hmm might be wise to convert that part of NH8 highway to an express way

In Gujarat all NH are as good as Express Highways.
I used to drive from Boriwali - Ahmedabad 2 years back in nights and I was simply amazed how the NH 8 turns into 6 lane as soon as you enter Gujarat. Not only this the roads to Mumbai, be it from Nasik, or Surat or from Goa, except Pune expressway suck big time as MH govt dont care at all. My avg speed from Mumbai to Bhilad checkpost was hardly 60-70 kmph whereas from Bhilad to Ahmedabad I used to drive in 4.5 hours (avg 90-100).

The roads are the best in Gujarat. Some are even better than interstate freeways here in USA. :lol:

harendrain

September 9th, 2011, 06:55 AM

In Gujarat all NH are as good as Express Highways.
I used to drive from Boriwali - Ahmedabad 2 years back in nights and I was simply amazed how the NH 8 turns into 6 lane as soon as you enter Gujarat. Not only this the roads to Mumbai, be it from Nasik, or Surat or from Goa, except Pune expressway suck big time as MH govt dont care at all. My avg speed from Mumbai to Bhilad checkpost was hardly 60-70 kmph whereas from Bhilad to Ahmedabad I used to drive in 4.5 hours (avg 90-100).

The roads are the best in Gujarat. Some are even better than interstate freeways here in USA. :lol:

I need to clarify, Sanand is located on Ahmedabad-Maliya (180 Kms) State Highway no 17 & not on NH-8A (Ahd-Rajkot-Porbandar). However, the entire stretch of Ahd-sanand-Maliya ie 180 Kms is in final stages of completion of 4-laning by L & T.

Gujarat is probably the only state where almost 700 Kms of state highways including those under completion in 2011, are 4-laned. These roads include,Ahd-Mahesana-Palanpur, Ahd-Maliya, Rajkot-Jam-Khambhalia, Vadodara-Halol-Shamalaji, Bharuch-Dahej etc.

Surat-Hazira & Bhuj-Bhachau (Partly) are also contracted for four-laning.

Vasad-Bagodara Six Laning contract is already awarded.

Budget for surrent year has been approved for Ahd-Dholera-Bvng & Bvng-Rajkot State Highways.

Certainly no other state Highways would even come closer to this figure.

As far as National Highways are concerned, Six Laning is completed on NH-8 from Bhilad to Vadodara.

Further, Cotracts are already awarded for six Laning of NH-8 from Vadodara to Ahmedabad ( Super Mega Expressway) & Ahmedabad to Udaipur.

viedumonde

September 10th, 2011, 12:43 PM

MeMumbaikar

September 10th, 2011, 01:35 PM

Do we really need so many cars?

The first world countries have realised their mistake of over-dependency on private vehicles and are switching over to public transport and discouraging the usage of cars.
Do we need to repeat the same mistakes they made, or should we learn from their mistakes?
Look at any Indian city now. Every road is clogged to its limit. And still maybe only 10 percent of the population owns a car. Imagine the situation when this number increases to even 20%. Do u think our cities are designed to accommodate such a load of private transport?

And moreover, the petrol prices are shooting up so much, and the hard earned money goes to the gulf countries via petroleum. The country is at a huge loss.

And, there was a research conducted which said " If u divide the total distance travelled by a car by the amount of time spent to earn the money to buy a car, to earn the petrol to run the car, time spent in the hospital in case of an accident, time spent in upkeep of the car... etc etc etc, the actual speed of the car is just 6km/h, the same as walking. "

I had read about this long time ago, but it hit me hard then, and even now. I don't know the source, will post if i find it.

We should discourage the use of cars to improve national savings and invest them on quality public transport.

(a) how do you know that these cars being produced are not going to be exported to other countries? They can employ people. India should produce cars and look to export them to other countries. Best solution.

(b) car ownership does not mean we use the car everyday. I use the car mostly on weekends to drive the family to social occasions. Most i know if mumbai do that. India as a whole remains firmly a two wheeler market.

(c) Most cars in India now a days are CNG/Petrol. Secondly as a ratio to salary earned fuel is become less expensive by the day.

(d) Rural India especially needs a car. You cant provide adequate public transport there. Cities yes you can.

GJ10

September 10th, 2011, 04:14 PM

hmm google maps tells me its about 27 km from the centre of Ahmedavad.......

any transport projects to have an express-way linking the two? like similar to express way between Delhi and Gurgoan?

Seems like Ahmedabad's version of Gurgoan.

As part of DMIC, Sanand will be will be developed as a smart city by a consortium of Japanese companies headed by Mitsubishi. Its one of the "early-bird projects", so even if the DMIC eventually gets scaled down as most ppl expect it will, this is a project that is unlikely to be affected. As per latest DMIC progress report (as at August 2011 (http://www.dipp.nic.in/English/Schemes/DMIC/MonitoringFormat_DMU_PMO_31August2011.pdf) : Box 8, pg15-16) pre-feasibility report submitted 31 march 2011 and Mitsubishi/DMIDC meeting 6th June 2011 to start pilot projects.

Detailed study and development recommendations of Sanand region has been completed by CEPT University and is available here (pdf 11.7mb) (http://www.urbanindia.nic.in/programme/ud/UIDSST/CDP/CDP-Sanand.pdf)

Out of interest, nearby Changodar is also going to be one of the early-bird smart cities, but yet to be decided whether the Mitsubishi or Hitachi consortium will be given the lead for the project. Changodar (on NH8) is the heart of the Pharma/Biotech industry in the Ahmedabad region and obviously now the Sanand area is an emerging Auto location. Dedicated Freight Corridor will pass through both.

MeMumbaikar

September 10th, 2011, 06:58 PM

As part of DMIC, Sanand will be will be developed as a smart city by a consortium of Japanese companies headed by Mitsubishi. Its one of the "early-bird projects", so even if the DMIC eventually gets scaled down as most ppl expect it will, this is a project that is unlikely to be affected. As per latest DMIC progress report (as at August 2011 (http://www.dipp.nic.in/English/Schemes/DMIC/MonitoringFormat_DMU_PMO_31August2011.pdf) : Box 8, pg15-16) pre-feasibility report submitted 31 march 2011 and Mitsubishi/DMIDC meeting 6th June 2011 to start pilot projects.

Detailed study and development recommendations of Sanand region has been completed by CEPT University and is available here (pdf 11.7mb) (http://www.urbanindia.nic.in/programme/ud/UIDSST/CDP/CDP-Sanand.pdf)

Out of interest, nearby Changodar is also going to be one of the early-bird smart cities, but yet to be decided whether the Mitsubishi or Hitachi consortium will be given the lead for the project. Changodar (on NH8) is the heart of the Pharma/Biotech industry in the Ahmedabad region and obviously now the Sanand area is an emerging Auto location. Dedicated Freight Corridor will pass through both.

:cheers:

kelvinpl80

September 19th, 2011, 02:16 PM

Sanand is one of the largest Industry in Ahmadabad. I heard that a Taiwan Industrial Park is also coming up near Sanand in the Indian state of Gujarat which is monitored by Chief Minister Narendra Modi.

Latheesh_r

September 20th, 2011, 03:48 PM

Great going Sanand TML, Ford, Peugeot and MSIL. Kudos to state Govt. they are doing something correct!

Euromast

September 20th, 2011, 03:53 PM

is Maruti Suzuki confirmed in Gujarat?

Aditya Jadeja

September 20th, 2011, 05:42 PM

is Maruti Suzuki confirmed in Gujarat?

Well...As per the latest news from Japanese newspapers , Maruti will be establishing a 1.3 Billion Re plant in Gujarat ...Not in sanand but most probably in Northern Gujarat...!!

However , the final word will be out by end of October...!!

harendrain

October 1st, 2011, 06:39 AM

And now it is "Audi" plumping for Gujarat. A strong vote of confidence in Gujarat

See news item in DNA below

http://www.dnaindia.com/money/report_gujarat-on-wheels-audi-may-be-next-to-set-up-shop-in-state_1593405

rmvdweller

October 2nd, 2011, 11:34 AM

Beautiful stuff!! Lot of positive news from Gujarat! :cheers:

IndiansUnite

October 6th, 2011, 05:02 AM

Some pics of the associated roadworks at Sanand:

Copyright Reuters
http://img714.imageshack.us/img714/8434/800xb.jpg
Workers level the soil while building a road near the proposed Ford car plant in Sanand, Gujarat state, September 26, 2011.

http://img411.imageshack.us/img411/5237/800xrt.jpg
A worker drives a road-roller during road construction near the proposed Ford car plant in Sanand, Gujarat state, September 26, 2011.

http://img404.imageshack.us/img404/2964/800xn.jpg
Tata Nano automobiles are seen parked at the carmaker's plant in Sanand, Gujarat state, September 26, 2011.

rockystone

October 15th, 2011, 03:57 PM

Peugeot to start work on Sanand facility next month

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/peugeot-to-start-work-on-sanand-facility-next-month/articleshow/10365144.cms

French car-maker PSA Peugeot Citroen will start work on its plant at Sanand in the first week of November, a company official said. The company announced on September 1 that the company would return to India after 10 years and set up its facility in Gujarat. American car-maker Ford Motors too has began its work on its second Indian facility that will will roll-out the first car in 2014. While Peugeot plans to invest Rs 4,000 crore , Ford too will invest a similar amount and have a capacity to produce 1.65 lakh cars annually. :cheers:

Senior Peugeot officials recently met Gujarat chief minister Narendra Modi and discussed their plans. "Stone laying ceremony will take place on November 3 at the 600 acre site at Sanand," said an official in Chief Minister's Office. Officials in the state industries department say that the design of the manufacturing facility has been finalised and its officials are undergoing training in France. Peugeot officials also claimed that the work on the manufacturing plant is going on in full swing.

The European car-maker will produce B-plus, C and D class cars for the Indian market. Its model 508 will be the first to roll out in 2014. Company officials have earlier said that certain changes in the C-class cars will be made to suit the requirements of the Indian customer. Later, Peugeot will also bring its hybrid (diesel and electric) vehicles to India. It has already tied up with Ford for diesel engines and with BMW for gasoline engines.

The company had also inked a memorandum of understanding for setting up an institute for skilled manpower for the industry. Philippe Varin, chairman of the board of PSA Peugeot Citroen had earlier told ET that the compay will have high rate of indigenisation in terms of spares used in the car.

The state government has provided 600 acre plot to Peugeot adjoining the site for the mother plant of Tata Nano in the North Kotpura village of Sanand district. Of this, 100 acre will be used by its vendors. This is company's reentry into the Indian auto market after a decade, when its joint venture with Premier Automobiles Limited did not materialise.

India is poised to become the third largest car market in one decade followed by the US and China.:cheers: However, it is the third month in succession that car sales have dipped in the country. According to figures released by the Society of Indian Automobile Manufacturers (SIAM) , domestic passenger car sales stood 1,65,925 units in September against 1,68,959 units in the same month last year indicating a drop of 1.8%.

Sanand, about 30 kilometres from Ahmedabad, has emerged as a centre for auto industry. Tata Motors first zeroed in on the city for manufacturing Nano, followed by Ford Motors India and Peugeot.

bhupenparikh

October 24th, 2011, 03:17 AM

Any news from maruti when they going out of haryana?

Peugeot to start work on Sanand facility next month

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/peugeot-to-start-work-on-sanand-facility-next-month/articleshow/10365144.cms

French car-maker PSA Peugeot Citroen will start work on its plant at Sanand in the first week of November, a company official said. The company announced on September 1 that the company would return to India after 10 years and set up its facility in Gujarat. American car-maker Ford Motors too has began its work on its second Indian facility that will will roll-out the first car in 2014. While Peugeot plans to invest Rs 4,000 crore , Ford too will invest a similar amount and have a capacity to produce 1.65 lakh cars annually. :cheers:

Senior Peugeot officials recently met Gujarat chief minister Narendra Modi and discussed their plans. "Stone laying ceremony will take place on November 3 at the 600 acre site at Sanand," said an official in Chief Minister's Office. Officials in the state industries department say that the design of the manufacturing facility has been finalised and its officials are undergoing training in France. Peugeot officials also claimed that the work on the manufacturing plant is going on in full swing.

The European car-maker will produce B-plus, C and D class cars for the Indian market. Its model 508 will be the first to roll out in 2014. Company officials have earlier said that certain changes in the C-class cars will be made to suit the requirements of the Indian customer. Later, Peugeot will also bring its hybrid (diesel and electric) vehicles to India. It has already tied up with Ford for diesel engines and with BMW for gasoline engines.

The company had also inked a memorandum of understanding for setting up an institute for skilled manpower for the industry. Philippe Varin, chairman of the board of PSA Peugeot Citroen had earlier told ET that the compay will have high rate of indigenisation in terms of spares used in the car.

The state government has provided 600 acre plot to Peugeot adjoining the site for the mother plant of Tata Nano in the North Kotpura village of Sanand district. Of this, 100 acre will be used by its vendors. This is company's reentry into the Indian auto market after a decade, when its joint venture with Premier Automobiles Limited did not materialise.

India is poised to become the third largest car market in one decade followed by the US and China.:cheers: However, it is the third month in succession that car sales have dipped in the country. According to figures released by the Society of Indian Automobile Manufacturers (SIAM) , domestic passenger car sales stood 1,65,925 units in September against 1,68,959 units in the same month last year indicating a drop of 1.8%.

Sanand, about 30 kilometres from Ahmedabad, has emerged as a centre for auto industry. Tata Motors first zeroed in on the city for manufacturing Nano, followed by Ford Motors India and Peugeot.

jaadu

October 24th, 2011, 03:45 AM

I don't think Maruti will leave haryana but its expansion plant most probably is going to be in Gujarat !!

reshapco

October 24th, 2011, 01:45 PM

Maruti will have its units in Sanand soon.

NitinPatel

October 27th, 2011, 02:34 PM

www.deshgujarat.com/2011/10/27/maruti-suzukis-gujarat-decision-to-be-out-this-saturday/

maulik02

October 29th, 2011, 11:01 AM

Maruti Suzuki Q2 profit down 59.8%; green signal for new Gujarat plant

http://www.ndtv.com/article/business/maruti-suzuki-q2-profit-down-59-8-green-signal-for-new-gujarat-plant-144968

NitinPatel

October 29th, 2011, 11:33 AM

www.deshgujarat.com/2011/10/29/maruti-to-set-up-manufacturing-facility-in-mehsana-district/

numb.soul

October 29th, 2011, 01:21 PM

cheers 4 gujrat .. modi :rock:

NitinPatel

October 30th, 2011, 09:18 AM

http://epaper.timesofindia.com/Repository/getimage.dll?path=TOIA/2011/10/30/1/Img/Ar0010001.png

NitinPatel

November 3rd, 2011, 04:55 AM

www.deshgujarat.com/2011/11/02/groundbreaking-ceremony-for-peugeot-plant-today/

NitinPatel

November 3rd, 2011, 02:49 PM

www.deshgujarat.com/2011/11/03/french-peugeot-officials-perform-pujanew-plant-work-begins-with-sanskrit-shlokasvideo/

aks_sky

November 5th, 2011, 05:27 AM

Hyundai can come to Gujarat but conditions apply

Kim Joong-Keun, ambassador of South Korea, has said that the Korean car maker, Hyundai, can surely come to Gujarat "if the state government offers favourable conditions". Kim, who was in the city on a three-day tour, addressed the media on Friday.
He had a meeting with chief minister Narendra Modi on Thursday. During the meeting, the chief minister invited Hyundai to to set up car manufacturing plant in Gujarat. Kim replied that Hyundai can definitely come to the state. "If the state government offers favourable conditions and if the situation is good, then why can't Hyundai come to Gujarat?" he said.
On Friday, Kim also met around 20 industrialists of the city. Talking about Hyundai, Kim said the company was currently manufacturing 6 lakh cars per annum. "The company's current production capacity is being utilised fully but, in a couple of years, Hyundai may need to expand its capacity. Korean companies already have a strong presence in Chennai and Delhi. Their next location can also be Gujarat," he said.
During their meeting, Modi showed the South Korean ambassador some infrastructure projects. Later, Kim said that the chief minister was keen to attract investment and technology from Korea but they had asked the Gujarat government to first come up with a concrete plan and blueprint for projects.
"Once the plan is ready, I can bring to Gujarat 10 Korean construction companies who have the expertise to build the longest bridges of the world. But we need a concrete plan from the state government to do that," said Kim. The bilateral trade between South Korea and India is around $17.1 billion out of which Gujarat's contribution is 33%.

Source: Dna Epaper

IndiansUnite

November 5th, 2011, 05:39 AM

Some interesting pictures from Peugot's groundbreaking ceremony on this past Thursday:

Copyright Getty Images
http://img513.imageshack.us/img513/1045/650xd.jpg

http://img832.imageshack.us/img832/3844/650x.jpg
Left-Right: Frederic Fabre, Managing Director of PCA Motors, Jean-Raphael Peytregnet the Consul General of France, Vincent Rambaud Director General of Peugeot and Gregoire Olivier Member of the Managing Board PSA Peugeot Citroen and CEO of Asian Operations

http://img713.imageshack.us/img713/3844/650x.jpg

nishanth.kh9

November 5th, 2011, 02:26 PM

wow...so nice to see whites in our tradition

Aditya Jadeja

December 4th, 2011, 09:30 PM

After French Auto maker Peugeot set its base at Gujarat now its turn for another french auto maker and thats Renault...!!

Its scouting for 400 acres of land for its next car plant in Gujarat...!!

http://www.carzy.co.in/blog/car-news/renault-invade-gujarat-facility-plant.html/

:banana:

GJ10

December 9th, 2011, 12:28 PM

Apparently Kia motors in discussion to come to Sanand too?

Auto-Hub, Gujarat eyes drivers seat in 4 yrs (http://business-standard.com/india/news/auto-hub-gujarat-eyes-drivers-seat-in-4-years/458026/)

Narendra Modi has a big reason to thank his West Bengal counterpart, Mamata Banerjee. Her staunch opposition to the Tata Nano gave the Gujarat chief minister a foothold in the country’s automobile map. To his credit, Modi not only grabbed the opportunity with both hands, but also ensured he got to be in the driver’s seat as far as attracting automobile investment was concerned.

Consider this: by 2015-16, nearly one of every three cars that roll out in the country could be from Gujarat. If that’s not enough, in the next three-five years, half the installed capacity for making cars in India will be located in the state.

Just two years ago, the Sanand-Mehsana hub where most of the new car projects are being set up was nowhere on the country’s auto map, then dominated by the big boys in the Pune-Chakan-Aurangabad belt of Maharashtra, the Chennai hinterland of Tamil Nadu and the Gurgaon-Manesar belt in Haryana.

http://img4.imageshack.us/img4/8210/statsugf.png

With car makers from Maruti Suzuki, Peugeot PSA, Ford India and Kia Motors, apart from the Tatas and General Motors, making a beeline, the Gujarat government has cleared or is in advanced stages of negotiations for additional capacity to make nearly three million cars per annum, starting 2014.

Emphasising the trend, Abdul Majeed, PricewaterhouseCoopers partner who leads auto practice in India, says, “Over the next three-five years, we estimate Gujarat will have an installed capacity of over three million per annum, nearly half of the total capacity in the country by then.”

To look at it from another perspective, the car industry had projected total car sales would be 4.5-5 million by financial year 2015-16. Assuming that slightly more than half the capacity planned in Gujarat will be available by then, a third of the cars sold in the country should roll out of Gujarat, according to industry experts.

The total investment of these new projects is estimated at more than Rs 26,000 crore, not including the ones where talks are still on.

Those shifting to Gujarat have good reasons. Maruti Suzuki, for example, is the largest investor in the auto sector in Gujarat and has signed a pact with the state government to set up a two million per annum capacity plant in Mehsana district. The investment tag is Rs 18,000 crore.

The company has all its capacity currently in Haryana, where it is facing serious problems with workers forcing it to close the Manesar factory thrice this year. So, it has obviously resolved not to put all its eggs in one basket.

“I think all major projects on expansion and new projects are now coming to Gujarat. I have not heard of any going to other locations. The capacity being built up there will be equivalent to what is currently available across the country for cars,” points out R C Bhargava, chairman, Maruti Suzuki India Limited (MSIL).

There are three reasons for the Japanese giant's faith in Gujarat. One, proximity to Mundra port reduces its freight costs as most ships that handle cars now come to Mundra instead of Mumbai or Nava Sheva. Secondly, Bhargava says there is a perception the government is more pro-active in clearing projects. Thirdly, land acquisition is not troublesome. About half of the 1,400 acres earmarked for Maruti is land already acquired by the government. “For the rest, the government is open about supporting us to negotiate the commercial terms with farmers. In other states, they don’t want to be seen,” adds Bhargava.

Ford India, currenty located in Chennai with a capacity of 200,000 per annum, has preferred to go to Gujarat and build a much larger plant there, instead of sticking to the south. The company will also build an engine plant in the state with a capacity of 270,000 per annum.

Michael Boneham, president and managing director, Ford India, says, "The new facility at Gujarat will complement our world-class operations and facilities in Tamil Nadu wonderfully. Ford selected Gujarat because of its pro-business environment, infrastructure, access to ports and skilled workforce. Our second plant in Sanand will give us access to the north-western region, which is by and large the biggest market for passenger cars in the country. Gujarat will also help us get access and balance in India from a logistics aspect.”

But, the newfound aura around Gujarat could lead to its own problems, the biggest being in getting skilled labour attuned to the auto industry. Says a director of a well known international car company which has been scouting opportunities in India, “Gujarat’s development has been based on oil and petrochemicals, so there is bound to be a shortage of skilled auto labour and that could be a challenge.” He also points out the state has doled out huge land tracts for projects, which is not required, and many of the large production numbers promised may not even come though. “Car companies are taking 1,000 acres of land to build half a million cars. In Japan, they do more numbers in less than 100 acres. So, is it just a land play or will the project actually come?" he asks.

The production numbers of Nano have not lived up to expectations. It sold a little more than 140,000 in the 18 months from July 2009, though the projection was of more than 240,000 cars annually.

MeMumbaikar

December 9th, 2011, 03:30 PM

fantastic

GJ10

December 28th, 2011, 03:28 PM

Dedicated Freight Corridor yard at Ghuma (http://articles.timesofindia.indiatimes.com/2011-12-22/ahmedabad/30545980_1_dfccil-ahmedabad-freight-corridor-corporation)

Ghuma will be the destination for loading and unloading goods from Ahmedabad city and industries in Sanand. The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) has zeroed in on Bhora-Ghuma station, a small station between Amli-Sanand for setting up yard for suburban services and access for dedicated freight corridor (DFC).

DFCCIL has set up a special purpose vehicle under the administrative control of ministry of railways to undertake planning and development. DFCCIL officials who carried out the survey in Ghuma found it to be suitable for setting up a yard.

Officials said that for loading the goods from Sanand and nearby Ahmedabad city, one will have to load the same from Ghuma station. "DFCCIL has decided to bypass Ahmedabad city. It will not enter the city and will not connect the main goods yard situated in Maninagar," said a DFCCIL official.

DFCCIL's survey found that the Ghuma station was a non operational one with two up and down lines connecting Rajkot and Saurashtra.

Once completed, the dedicated freight corridors will enable the railways to meet market needs more effectively. Officials said the Mumbai-Delhi Corridor will pass through the outskirts of Ahmedabad.

The Western Corridor will traverse the distance from Dadri to Mumbai, passing through the states of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra.

Officials said that earlier there were plans to have the yard in Viramgam, but they found Ghuma to be close to Sanand which is well on its way to becoming an automobile hub of the state. The yard will be approximately 10-15 km from Sanand and equal distance from Ahmedabad as well.

DFCCIL officials said that there is a possibility that the track might be diverted on the outskirts of the city from Mehmadabad. "The decision to bypass Ahmedabad was taken because there would not be availability of land for the dedicated track.

Pawan Kumar, the DFCCIL officer in Ahmedabad, said that the DFCCIL has zeroed in on Bhora-Ghuma station and the survey has been completed for the yard at Ghuma.

Had been suggestions for a while that DFC would pass through this area, good to get some confirmation though. Along with the dry port at Sanand, will be all the required supporting infra needed for industries in the region.

Now, after getting the big names, hopefully will be a case of waiting and watching the ancillary companies make the obvious move to Sanand

Auto parts maker Valeo plans unit at Sanand (http://www.thehindubusinessline.com/companies/article2752548.ece)

Auto component maker Valeo is scouting for opportunities in Sanand, Gujarat to set up a manufacturing plant.

With big names such as Ford, Tata Motors and Peugeot driving into the region, Sanand is rapidly transforming into an auto hub.

Valeo expects to start construction at Sanand soon and have a plant running by 2013. This is part of the company's efforts to ramp up local manufacturing.

The company currently manufactures clutches, friction materials and lighting systems at its plants in Chennai, while its Pune plant makes security systems, starters and alternators.

By 2013, Valeo is looking to locally manufacture wiper systems, top column module, compressors and air management systems, said Mr P.R. Dhaamodharan, Group President and Managing Director, Valeo India.

“Of the 16 product groups globally, only four are manufactured locally at present. Valeo India will localise most products in the coming years.”

vikaskumar11233

December 30th, 2011, 10:59 AM

Hi all
I am here with a hot news that Tata motors had postponed its upcoming Tata Nano 2012 diesel which was earlier in news that Tata will be launching it in 2012. One good news is also here that Tata will introduce its new Tata Pixel car in auto expo 2012.

0Roller

December 31st, 2011, 03:15 AM

Ahmedabad: Oerlikon Graziano, the world’s largest manufacturer of precision gears and shafts, is likely to invest more than Rs 100 crore to set up a manufacturing plant in Gujarat, a senior company official said.

Oerlikon Graziano supplies gears to Ferrari, Mercedes and BMW among other car manufacturers. Its products are also used in tractors and off-road vehicles such as road rollers and bumpers. The company has two gear manufacturing plants in the country — at Kolhapur and Greater Noida. It has now finalised Gujarat for setting up its third plant.

“We have finalised Gujarat for our third plant and are looking for a suitable location. We will be investing around Rs100 crore for the plant,” SK Sehgal, director, Oerlikon Graziano, said.

The company requires around 30-35 acre land. It has identified Sanand, where leading car manufacturers such as Ford and Peugeot are setting up their plants, for its gear manufacturing unit.

With a capacity to produce 3.50 lakh units a year, the plant will create around 1,800-2,000 jobs. It would also produce shafts and sync assemblies, among other parts. The turnover from the plant would be to the tune of Rs500 crore over the first three years.

“We are likely to complete formalities for land acquisition for the plant by March. The construction of the plant will take another two years,” added Sehgal.

Source : http://daily.bhaskar.com/article/GUJ-AHD-made-in-gujarat-gears-for-ferrari-bmw-soon-2696942.html

GJ10

January 14th, 2012, 10:11 PM

Auto hub awaits Plastic Industry (http://www.expressindia.com/latest-news/auto-hub-awaits-plastic-industry/898822/)

A finished car would require about 150 kgs of plastic! And the state government seems to have special attention to this little detail in a big way.

A fact made clear by the government announcing its plans of disbursing 240 acres of land at the state’s auto hub Sanand to the All India Plastic Manufacturers Association (AIPMA) at an event held in the run-up to the Vibrant Gujarat Global Investors’ Summit, to be held between January 8 and 13, 2013, on Tuesday.

According to sources, the move might attract investment close to Rs 5,000 crore by the plastic industry to develop the AIPMA auto park. AIPMA, which is the apex and non-profit body of the plastic industry in India, has nearly 2,500 listed members.

While the plastic park at the Dahej Special Investment Region, spread over 200 acres, saw some of the top 100 plastic companies in the country vying for space last year with a total investment of nearly Rs 3000 crore, the new announcement by Maheshwar Sahu, Principal Secretary (Industries and Mines), is likely to help auto manufacturers who would find a supplier base nearby to fuel their manufacturing needs.

AIPMA president Jayesh K Rambhia said, “We are expecting investment of over Rs 5,000 crore at the upcoming plastic hub. The key to building a good auto hub is a plastic suppliers base, as it is an important component of car manufacturing. At the Dahej SIR, close to 50 companies are in the process of setting up base. Whereas 62 members have already come forward to set up their base at the Sanand AIPMA auto park and there is room for around 50 more companies.”

Gujarat, which contributes 65-70 % of the country’s total plastic production, is home to many packaging companies in the small and medium segment.

French Auto-parts makers may enter Sanand in next 1-2 years (http://www.thehindubusinessline.com/industry-and-economy/article2788011.ece?homepage=true&ref=wl_home)

Sixty French automobile component suppliers on Monday explored setting up auto-components vendor park near Sanand in Ahmedabad district, where a number of global auto-makers, like Ford and Peugeot, are establishing plants.

Facilitating the French businessmen's visit to Gujarat, Mr Bernard Babo, Chairperson, French Vehicles Equipment Industries (FIEV), India Committee, indicated that plants in the vendor park could be set up in one to two years.

The proposed vendor park would consist of tier-1 and -2 auto-component suppliers to the recent auto entrants in the State and even to others, an official spokesman said here.

An event was organised by the Gujarat Government's Industrial Extension Bureau, along with Automotive Components Manufacturers Association, FIEV and French auto-major Peugeot, as part of the State's efforts to boost the automobile and auto-components sector.

Addressing French businessmen at the event, Mr Maheshwar Sahu, Principal Secretary, Industries and Mines Department, said apart from developing Sanand as an auto cluster, the State Government is also strengthening traditional auto clusters like Rajkot and Halol by setting up skilled operations centres throughout Gujarat.

The State Government has planned about 300 skilled operations centre for the sector, of which 86 have already begun operations.

Kajima gets order to build Ford auto plant in Sanand (http://mdn.mainichi.jp/mdnnews/business/news/20120113p2g00m0bu142000c.html)

TOKYO (Kyodo): Major constructor Kajima Corp. said Thursday its Indian subsidiary has landed an order from an Indian subsidiary of Ford Motor Co. to build an auto factory in the western Indian city of Sanand in Gujarat Province.

The factory on a 1.86 million square-meter site will be completed by 2014, with total investment, including production facilities, of around 77 billion yen.

Its production capacity for the first year will come to around 240,000 units.

Kajima did not disclose the value of the order.

Kajima secured authorization to establish its Indian arm last June with an eye to securing the Ford order.

The Indian arm will intensify efforts to land more orders from various companies, especially Japanese, European and U.S. companies that set up business bases in India.

Kaushal

January 18th, 2012, 02:37 PM

સાણંદમાં હવે લાગશે ઓટો વેન્ડર

http://www.sandesh.com/article.aspx?newsid=27810

કાઇનેટિક એન્જીનીયરિંગ પણ બહુ ઝડપથી ગુજરાત તરફ વળી શકે છે. કંપની ગુજરાતના ઓટો હબ ગણાવતા ટાઉન સાણંદમાં એસેમ્બલી પ્લાન્ટ લગાવવાની યોજના બનાવી રહી છે. આ પ્લાન્ટથી કંપની ટાટા નેનો માટે કંપોનેન્ટ સપ્લાઇ કરશે. કંપનીનું કહેવું છે કે સાણંદમાં પ્લાન્ટ લગાવવા માટે ટાટા મોટર્સ સાથે વાત કરી રહી છે. હાલ કંપની પોતાના એહમદનગર પ્લાન્ટથી નેનો માટે ગિયર સપ્લાઇ કરે છે.

માત્ર કાઇનેટિક જ નહીં બીજા અનેક વેન્ડર પણ સાણંદની આસપાસ જ પોતાના પ્લાન્ટ લગાવવા ઇચ્છે છે અને આ જ કારણ છે કે નેનો, ફોર્ડ અને પ્યૂજો પ્લાન્ટની આસપાસ અનેક વેન્ડર્સ પાર્ક બનવા જઇ રહ્યા છે. ફ્રાંસના ઓટો ઉત્પાદક ભારતીય ઉત્પાદકોની સાથે મળીને આ વેન્ડર્સ પાર્ક બનાવશે. ઓટો કમ્પોનેન્ટ મેન્યુફેક્ચર્સ માટે સાણંદ સિવાય હાલોલ અને મહેસાણા બીજી પસંદગી હોઇ શકે છે.

યુરોપ અને અમેરિકાની મંદીથી પ્રભાવિત ફોર્ડ અને પ્યૂજો જેવી કંપનીઓ ભારતમાં મોટું માર્કેટ ભવિષ્ય જોઇ રહી છે. ફ્રાંસની પ્યૂજોએ તો ગુજરાતના સાણંદમાં પોતાના પ્લાન્ટનું કામ શરૂ પણ કરી દીધું છે અને ફ્રાંસના ઓટો પાર્ટ મેન્યુફ્રેક્ચર પ્યૂજોના પગલે ચાલી રહી છે. આ કંપનીઓ ભારતીય ઓટો એન્સીલરી કંપનીઓની સાથે મળીને કામ કરવા ઇચ્છે છે અને ગુજરાત સાણંદની પહેલી પસંદ છે.

ગુજરાતમાં ટાટા, ફોર્ડ, પ્યૂજો અને મારૂતિ જેવી કંપનીઓના પ્લાન્ટ લગાવવાનું મોટું કારણ આસાનીથી મળતી જમીન અને રાજ્ય સરકારની ઇન્ડસ્ટ્રી ફ્રેન્ડલી પોલિસી છે. ગુજરાત સરકાર ઇચ્છે છે કે તમામ કાર મેન્યુફેક્ચરીંગ કંપનીઓને સસ્તા ભાવ પર સારા પાર્ટ્સ મળે છે અને તેના માટે જરૂરી છે કે ઓટો એન્સિલરી ઉદ્યોગને પ્રોત્સાહન આપવામાં આવશે. ફ્રાંસથી આવેલા લગભગ 60 ઓટો પાર્ટ ઉત્પાદકોએ ગુજરાત અને ઇન્ડિયાના ઉત્પાદકોની સાથે મળીને વેન્ડર્સ પાર્ક બનાવવામાં રસ દાખવ્યો હતો. જો કે ટિયર 3ના ઉત્પાદકોને ગુજરાત સરકાર જીઆઇડીસીમાં જગ્યા આપશે.

Kaushal

January 24th, 2012, 10:53 PM

કોલગેટનો નફો 75 ટકા ઊછળ્યોઃ ગુજરાતમાં નવો પ્લાન્ટ સ્થાપશે
http://gujarati.economictimes.indiatimes.com/articleshow/11612740.cms

ટૂથપેસ્ટ કેટેગરીના વોલ્યુમમાં પ્રોત્સાહક વૃદ્ધિને પગલે કોલગેટ-પામોલિવે ડિસેમ્બરમાં પૂરા થયેલા ત્રિમાસિક ગાળામાં 74.48 ટકાની વૃદ્ધિ સાથે રૂ. 115.58 કરોડનો ચોખ્ખો નફો કર્યો છે.

અગાઉના વર્ષના સમાન ગાળામાં કંપનીએ રૂ. 66.24 કરોડનો ચોખ્ખો નફો કર્યો હતો. કંપનીએ રોકાણકારો માટે શેર દીઠ રૂ. 9 નું વચગાળાનું ડિવિડન્ડ જાહેર કર્યું છે. આ સાથે ડિસેમ્બર 2011 માં પૂરા થયેલા નવ મહિનામાં કંપનીએ શેર દીઠ કુલ રૂ. 9 ના ડિવિડન્ડની ચુકવણી કરી છે. ત્રીજા ત્રિમાસિક ગાળામાં કંપનીનું ચોખ્ખું વેચાણ 19.95 ટકા વધીને રૂ. 669.57 કરોડ થયું છે, જે અગાઉના વર્ષના સમાન ગાળામાં રૂ. 558.20 કરોડ હતું.

કંપની ગુજરાતમાં સાણંદ ખાતે રૂ. 200 કરોડના ખર્ચે ઉત્પાદન સુવિધા સ્થાપી રહી છે. કંપનીના જણાવ્યા અનુસાર તેણે ત્રીજા ત્રિમાસિક ગાળામાં નવા પ્લાન્ટ માટે લીઝહોલ્ડ જમીનની ફાળવણી પેટે રૂ. 42.6 કરોડની ચુકવણી કરી છે.

GJ10

January 31st, 2012, 07:51 PM

Welcome to the forum Kaushal, but lets keep this thread for Auto news only!

Peugeot reviewing India car plant plans (http://www.google.com/hostednews/afp/article/ALeqM5gDNHzstVO_xi-JdE5F5P27UrM7HA?docId=CNG.c278d1373631c8529a6a2737c5b048e7.291)

French carmaker PSA Peugeot Citroen, battling falling sales at home, said Tuesday it was reviewing its India car rollout schedule but would not shelve plans to enter the vast and fast growing market.

"The group is currently reviewing the timetable for its Indian project which could result in some adjustments to the plan," a PSA spokesman in Paris told AFP after Indian press reports that it was planning to drop the project.

PSA announced in September it would invest 650 million euros ($850 million) to construct a plant in the western state of Gujarat, where it aimed to produce its first car, the 508 mid-size sedan, in 2014.

Earlier, leading Indian financial daily the Economic Times said PSA's difficult financial situation, driven by falling domestic sales, had compelled Europe's second largest carmaker to put off its India plans.

The PSA spokesman said reports in India that the company was closing down its office in Mumbai were also incorrect.

"Following the accord with Gujarat state, Peugeot will move its offices from Mumbai, where they were set up first during the preliminary stages of the project, to Ahmedabad."

Sources close to the matter in Paris told AFP meanwhile that PSA was looking at the project again because of its strained financial position.

"The company is looking at its accounts to see how it can proceed," one of the sources said.

Peugeot had zeroed in on emerging automobile production hub Sanand in Gujarat to build its plant where it aimed to produce 170,000 vehicles a year. Peugeot was the third carmaker, after Tata Motors and Ford, to opt for Sanand.

For the French auto major, its India project is part of a larger plan to derive more than half of its sales outside Europe by 2015, up from 39 percent in 2010.

Late last year, PSA said it would cut 6,000 jobs in 2012 due to what it called a "challenging" environment in Europe where sales fell 6.1 percent in 2011, dragging down overall sales by 1.5 percent to 3.5 million vehicles.

After looking at a number of potential partners, the company decided to go it alone in India but the Economic Times said PSA might now be reconsidering this option.

PSA declined to comment on that possibility.

The company had said in early January it might start selling its cars in India before its plant is ready by importing its 508 sedan and RCZ sports car. It broke ground on the Gujarat plant in November.

Not ideal, but the fact they are relocating their office from Bombay to Ahmedabad can hopefully be taken as a positive sign. Realistically will depend a lot on Peugeots global fortunes.

NitinPatel

February 6th, 2012, 01:16 PM

Maruti Suzuki yet to firm up land requirement for Gujarat plant (http://articles.economictimes.indiatimes.com/2012-02-03/news/31021205_1_gujarat-plant-maruti-suzuki-land-requirement)

The country's largest car-maker Maruti Suzuki is yet to firm up the land requirement for its proposed new manufacturing plant in Gujarat.

"We do have plans to go to Gujarat and preliminary talks have been already held with the state government. But nothing has been decided on when and how much land will be acquired there," Managing Executive Officer (Engineering) of Maruti Suzuki I V Rao told reporters here today.

He said that the idea behind the Gujarat plant was to serve export markets through the Mundra port.

"The matter has not been placed before the board for approval yet," Rao said at the launch of new Swift Dzire sedan here.

Rao said the Gujarat idea was floated in May, 2011, when the industry was growing at a healthy rate of 18 per cent.

But with the slowdown in car sales subsequently, no progress had been made in this regard, he said.

With SIAM predicting annual growth of 10 per cent in the automobile segment next few years, the Gurgaon and Manesar plants would suffice to meet the demand.

Post completion of the third plant at Manesar, Maruti's annual production capacity would touch 1.75 million units.

He said that steps were also being taken to reduce the waiting period for diesel cars by increasing production.

GJ10

March 19th, 2012, 11:19 PM

US Automakers in race for Indian market (http://www.washingtonpost.com/world/asia_pacific/us-automakers-in-race-for-indian-market/2012/03/13/gIQAycoGLS_story.html)

SANAND, India — On a baking-hot plain in western India, Ford is preparing the ground for one of its biggest investments in Asia, a $1 billion car assembly and engine plant designed to more than double its manufacturing capacity here.

As U.S. automakers get back on their feet after the global financial crisis, companies such as Ford and General Motors are looking for growth and investment opportunities worldwide. Few destinations appear more attractive than India, and perhaps no other place in India is more appealing than an emerging auto hub in the western state of Gujarat.

“We don’t get many chances to make an investment of this magnitude,” said Joe Hinrichs, president of Ford Asia Pacific and Africa. “It’s a bet on India’s future, and a bet on Ford’s future in the country and the region.”

With the West’s economies sluggish and car markets there saturated, and with China’s explosive growth beginning to taper off, India offers a mouth-watering alternative.

Passenger car sales grew 137 percent in the past six years, but there are still only about 13 cars per 1,000 people in this country of 1.2 billion, compared with 35 or 40 in China and more than 800 in the United States.

India is the world’s sixth-largest car market and is expected to take third place behind China and the United States by the end of the decade, the management consulting firm McKinsey and Co. predicts, with annual sales growth of 12 to 14 percent from 2014 to 2020. That would bring sales of cars and sport-utility vehicles to more than 6 million vehicles and penetration of cars per 1,000 people to the sort of levels currently seen in China.

Ford has been a little slow to the party, perhaps because it had neither the financial resources nor the products to target the Indian market aggressively.

‘Dramatic growth phase’

A decade of breakneck economic growth and a fast-expanding middle class are bringing India close to a “tipping point,” when incomes in towns and smaller cities across the country reach the threshold at which car sales typically explode.

That should happen by the middle of this decade, Ford’s Hinrichs said, and “that’s when we expect another dramatic growth phase.”

Environmentalists warn of the prospect of millions more cars on India’s roads, especially in cities with some of the worst air quality in Asia. Nor is it easy to imagine how those roads will cope, congested as they already are with motorcycles, scooters, bicycles, three-wheeler auto rickshaws, ox carts, trucks and vans.

But even if infrastructure investment fails to keep pace with demand and congestion worsens, car ownership in India, just like in China, is becoming an important status symbol for an aspiring middle class.

To take advantage, General Motors set up a car factory near the western city of Pune, close to Mumbai, in 2008 and is expanding its plant at Halol in Gujarat, just a few hours’ drive from the site of Ford’s new factory at Sanand. It, too, is launching products for local tastes, such as the seven-seater Chevrolet Enjoy, aimed at bigger Indian families, and the Chevrolet Sail, both designed in China with the company’s joint-venture partner there.

Although high interest rates flattened India’s car market here last year, the company is equally bullish about the medium term.

Three brands dominate the Indian market — Maruti Suzuki, Hyundai and the homegrown Tata Motors account for roughly 70 percent of passenger car sales — but GM, like Ford, thinks it can significantly raise its market share from the roughly 4 percent it has now.

“We’ve made a very strong commitment to India,” said Lowell Paddock, the company’s India president and managing director. “There is so little growth in a lot of the developed world that markets like India, even though they may be growing less strongly than in the past, are still more attractive.”

‘The auto hub’ of India

Much of the new investment in India’s car industry is arriving on the shores of Gujarat, a state run by business-friendly but polarizing Chief Minister Narendra Modi.

Modi was denied a visa to travel to the United States in 2005 over allegations that he turned a blind eye to or even actively encouraged riots in 2002 in which more than 1,100 people, almost all of them Muslims, died. But Ford said the incident had no bearing on its decision.

“We don’t make a political statement one way or the other, we’re making a business investment,” Hinrichs said. “These are multi-decade manufacturing facilities that last beyond any politician’s career or any individual’s career in business as well.”

Tata Motors is already in Gujarat, manufacturing the world’s cheapest car, the Nano, on a site bordering Ford’s. French automaker PSA Peugeot Citroen announced last year that it would build a plant in Sanand, while Maruti Suzuki also plans to follow.

Gujarat is one of India’s richest and fastest-growing states, and Ford and GM talk enthusiastically about the investor-friendly conditions there, the stable policy environment, the lack of corruption and the tremendous infrastructure, including uninterrupted power supply, great roads and access to ports for export.

Indeed, Modi makes no bones about his desire to turn Gujarat into “the auto hub” of India with consistent, pro-business policies.

“As a state, we are competing with China in the manufacturing sector,” he said. “There is no red tape-ism, only the red carpet.”

GM India’s vice president for corporate affairs, P. Balendran, speaks glowingly of governance in Gujarat and says Modi gives foreign investors his personal attention. Riots occur all over India, Balendran said. “It is only a temporary aberration, and this being a temporary aberration, it does not impact any of the investors.”

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Meeeet

March 23rd, 2012, 03:36 AM

Ford lays foundation for $1 billion car factory in Sanand...!!

Ahmedabad, 22 March 2012

Ford Motor Co. says it laid the cornerstone for a new billion dollar factory in Sanand, Gujarat.

The plant will have the capacity to manufacture 240,000 cars and 270,000 engines a year when it’s complete in 2014. The factory will produce cars for domestic consumers and for export.

Ford’s move to expand its India business comes amid slowing car sales in India.

So far during the fiscal year ending in March, car sales have crept up 0.3 percent, against the previous year’s 29.5 percent surge.

“With this new state-of-the-art facility for Sanand, we are committed to significantly increasing our manufacturing output and aggressively expanding our business in India,” said Michael Boneham, Ford India president and managing director.

The company said it has already attracted 19 component manufacturers to set up shop at Sanand.

http://DeshGujarat.Com/2012/03/22/ford-lays-foundation-for-1-billion-car-factory-in-sanand/

Euromast

March 26th, 2012, 09:21 AM

Maruti to shift carmaking to Gujarat; Gurgaon factory to only make diesel engines
Basic carmaking facilities - stamping, paint and assembly - will give way to a 3-lakh diesel engines facility which would eventually set the stage for migrating auto assembly operations to the larger 500-acre Manesar plant, also in Haryana.

Gurgaon's loss will be Gujarat's gain as a new 2 million cars-a-year facility is coming up in Mehsana. "We should take a final decision on Gujarat in the next-six weeks when land allocation is expected to happen, " Bhargava said.

"We have no scope for expansion at Manesar, so any additional capacity will come up in Gujarat and eventually would turn out to be our hub for making cars in India," Bhargava said.

The company is buying two 600-acre chunks of land in Gujarat, where one would be reserved for making cars and the other would be allotted to vendors for components and other ancillary operations.

Link (http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/maruti-to-shift-carmaking-to-gujarat-gurgaon-factory-to-only-make-diesel-engines/articleshow/12407495.cms)

numb.soul

March 26th, 2012, 09:50 AM

Maruti to shift carmaking to Gujarat; Gurgaon factory to only make diesel engines

Link (http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/maruti-to-shift-carmaking-to-gujarat-gurgaon-factory-to-only-make-diesel-engines/articleshow/12407495.cms)

does that means carmaking will stop in manesar also ??

because AFAIK , this was a very old plan , manesar plant to handle production and ggn plant to handle engines

Euromast

March 26th, 2012, 11:29 AM

Not completely

vikaskumar11233

April 4th, 2012, 06:35 AM

I am here with a hot and happening news that India's largest car manufacturer's Maruti Suzuki India is all geared up to bring out the much awaited MPV Ertiga on 12th April. The company is aiming at creating a niche category in the city vehicles that are easy to drive and park in the constricted parking zones. Maruti Ertiga (http://www.cardekho.com/carmodels/Maruti/Maruti_Ertiga) would be targeting the large families and hatchback up-graders rather than the commercial customers. The new MPV is expected to take on the likes of the Toyota Innova which is a top-selling car of the MPV segment.

Kaushal

April 18th, 2012, 10:43 PM

Peugeot mulls to roll out cars from General Motors's Halol plant

http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/peugeot-mulls-to-roll-out-cars-from-general-motorss-halol-plant/articleshow/12710104.cms

With Peugeot Citroen pulling the plug on a roughly 4,500 crore project to make cars out of Sanand in Gujarat, the Narendra Modi-headed government is pulling out all stops to keep the French auto giant back in the state.

One option being pursued: get Peugeot Citroen's 7% equity partner globally, General Motors (GM), to keep its India plans alive and make Peugeot cars out of its factory in Halol, some 200 km off Sanand.

"The company has informed the state industries department that it is exploring a joint venture with GM, which operates its biggest India facility in Halol," said a senior state government official. A Peugeot Citroen official based in India confirmed the development: "We are in talks with GM for a tie-up." But a spokesperson for the automaker in France refused to make any comment on the matter.

A GM India senior executive said it is too early to talk about any alliance with Peugeut in India.

In end-February, GM and PSA Peugeot announced a global alliance in which the Detroit carmaker will buy a 7% stake in Europe's second largest auto company. This makes GM the second largest shareholder after the Peugeot family.

"The GM and PSA Peugeot Citroen alliance is an important partnership for GM that will have a positive effect on our company worldwide, particularly in Europe. We expect it to have long-term benefits globally, however it's too soon to say how it will impact India and the Asia Pacific region," said P Balendran, VP, GM India.

Industry analysts, however, don't see too much strategic sense in GM India making products for Peugeot as the two carmakers would end up competing head-on. For instance, one of the cars Peugeot had lined up for India is the hatchback M3, a volume puller that is in the same segment as GM's next-gen Chevrolet Aveo U-VA.

In February 2011, Peugeot had said it was re-entering India, after over a decade. However, a grim financial situation precipitated by falling sales in its home market has compelled Peugeot to review its India plans.

The French automaker had zeroed in on Sanand to produce 170,000 vehicles per annum. According to the proposed plan, the first car, a mid-size sedan, was to roll out in 2014.

"The group is currently evaluating the scheduling of the project, which may lead to some adjustments to the schedule as it currently stands," a PSA Peugeot spokesperson had told ET in end-January.

In November 2011, Peugeot had laid foundation stone at Sanand in the vicinity of Ford India's upcoming facility. However, it could not stick to the payment schedule, and has not been able to pay the state government the installments for the 600-acre plot. Peugeot was supposed to pay 25 crore as the first installment. So far, it has not paid anything to the state, a state government official told ET.

The Narendra Modi government drew the focus of world businesses to Sanand after offering a quick relocation to Tata's Nano project from Singur in West Bengal. It has since been planning to promote Gujarat as an emerging auto hub and treats proposed facilities by Ford, Maruti and Peugeot as trophy projects.

Modi faces elections later this year and may not like to lose a multinational whose exit at this juncture may dent his pro-development image, said a state Congress functionary on the condition of anonymity.

NitinPatel

April 27th, 2012, 07:58 AM

Peugeot-Gujarat govt meet to discuss the fate of Sanand project next week (http://deshgujarat.com/2012/04/27/peugeot-gujarat-govt-meet-to-discuss-the-fate-of-sanand-project-next-week/)

Senior executives of French car maker PSA Peugeot Citroen will meet Gujarat government officials on May 2 to discuss the future of Rs 4000-crore Sanand project.

Last year Peugeot announced an investment of Rs 4,000 crore in Gujarat by setting up an integrated manufacturing unit, engine and gearbox plant to manufacture cars in Sanand near Ahmedabad. The state had signed a state support agreement(SSA) and allotted 600 acres of land for first phase of the project. In November last year the company laid foundation stone of the plant but could not pay the state govt the first installment of Rs 25 crore.

Early this week Peugeot’s Asia head Gregoire Olivier said in Beijing that the company may not go ahead with its Sanand project and would look at its global partner General Motors for launching cars in India. “There are a lot of other ways to enter India now that they don’t require us to put euro 600 million on the table,” he said.

In February this year, General Motors and PSA Peugeot announced a global alliance in which GM bought a 7% stake in Peugeot. GM India has car manufacturing plant at Halol in central Gujarat.

CivilEngineer079

May 8th, 2012, 04:03 PM

Force Motors in talks with Gujarat govt to set up facility

Pune-based Force Motors Ltd is in talks with the Gujarat government to set up a facility to expand its commercial vehicle business.

“We are awaiting approval from the board regarding the new unit in Gujarat,” managing director Prasan Firodia said in a telephone interview. “Once that is done, we shall make an announcement.”

The maker of Tempo, Trax and Traveller brands will firm up plans for the Gujarat factory in another two months, Firodia said, but declined to provide any investment details.

Force plans to invest around Rs.2,000 crore into the project for which the company will acquire 700-800 acres, either in Sanand or Halol, a Gujarat government official said, requesting anonymity.

Force manufactures its commercial vehicles at a Pithampur facility in Madhya Pradesh. The factory operates at 65% of its full capacity. However, with new products being added to the range, the capacity will be utilized very soon, said Firodia.

Meanwhile, after launching Force One—its maiden offering in the sports utility vehicle segment, which has met with a tepid sales response—Force is gearing up to introduce a seven to nine-seater van that will target the personal transport segment and will compete with Toyota Innova, Maruti Suzuki Ertiga and Mahindra Xylo.

Force will produce the vehicle under licence from Daimler AG and plans to invest Rs.350 crore on the project. It will be ready for launch early next year, said Firodia.

Commenting on the response to Force One, which went on sale in October, he said the company has sold close to 1,200 units so far—a number that fails to clear the halfway mark of the original sales target. The firm wanted to sell at least 4,000 units in the first year of its launch.

Firodia attributed the tepid response to the limited number of dealers. The company has 19 dealers and plans to scale it up to 30 by the end of this fiscal year.

There is more to the lukewarm sales response of the Force One than sales network, according to Hormazd Sorabjee, editor of Autocar India magazine. “It’s an outdated vehicle for its price,” Sorabjee said. “It lacks the sophistication which Indian customers want today.”

At Rs.11.17 lakh (ex-showroom in Mumbai), Force One competes with Mahindra XUV 500 (Rs.11.31) and Tata Motors Ltd’s Aria (Rs.11.61 lakh).

Sales of utility vehicles expanded 16% in the fiscal ended March 2012 to 367,012 units, according to lobby group Society of Indian Automobile Manufacturers.

People typically associate brands from companies like Mahindra and Mahindra Ltd and Toyota Kirloskar Motor Pvt Ltd with sports utility vehicles, said a salesperson at one of company’s Mumbai dealers, who spoke on condition of anonymity. Hence “they are sceptical of giving a new, unknown brand an opportunity and are wary of buying it”.

Firodia said while his company may be facing the challenge associated with the brand in the metro cities, its not the same in smaller towns where “people are well aware of Force’s lineage”. He expects the five-month-old model to gain traction once the dealer network is ramped up.

Force also plans to launch a higher trim version of Force One with four-wheel drive, airbag and other features. “It’s under homologation and should be ready for launch in the next two to three months,” he said. Homologation is the certification process for vehicles to ensure these are roadworthy and match government criteria.

karkal

May 8th, 2012, 09:21 PM

GJ10

May 14th, 2012, 03:48 PM

Gujarat to be or not to be Auto hub (http://daily.bhaskar.com/article/GUJ-AHD-gujarat-to-be-or-not-to-be-car-manufacturing-hub-3262350.html)

The dream of Chief Minister Narendra Modi to make Gujarat the auto hub of India is facing a bumpy ride right now.

Even as French automaker PSA Peugeot Citreon is believed to have more or less given up on its plans to set up a car manufacturing plant in Sanand, Maruti Suzuki India Limited is also learnt to have downscaled its proposed investment plans in the state.

The twin blows could be a big setback for the state’s ambitions to emerge as a car manufacturing hub of the country.

Maruti Suzuki had originally announced that it planned to set up a 10 lakh cars per year plant at an investment of Rs 6,000 crore in the first phase of its expansion in the state.

Reliable sources say the company has decided to start work at its Gujarat plant, which will come up near Bechraji in Mehsana, but with a significantly lower capacity than what was announced earlier.

“The Mehsana plant will have the capacity to produce 1 lakh cars in a year initially as against 10 lakh cars planned earlier. However, the capacity would be upwards in the future,” said a senior official, requesting anonymity.

The country’s largest car maker had said that it would invest Rs 6,000 crore in the first phase of Gujarat plant. The investment figures following the downscaling plans could not be immediately ascertained. A Maruti Suzuki spokesperson said he was not aware of such development, while industries minister Saurabh Patel claimed there was no change in the plans of Maruti Suzuki.

“We have not received any communication from Maruti Suzuki in this regards,” Patel said, when contacted by DNA. The company is close to acquiring around 600 acre of land in Bechraji for the plant, and an agreement is likely with the government in coming weeks.

In the wake of economic uncertainty and fall in car sales, Maruti Suzuki had earlier said that it was delaying its expansion plans for a few months. The company had also said that it would start the Gujarat plant only after capacity of its Manesar plant was fully utilised.

The company’s current capacity is around 13 lakh cars a year, which would go up to 17 lakh units in the next couple of years. The company sold 1.13 lakh cars in 2011-12, almost 11% lower than 2011-12 when it sold 1.27 lakh cars.

As far as Peugeot’s proposed Rs 4,000 crore plant at Sanand is concerned, the government seems to have more or less given up hope. “The chances of Peugeot setting up the plant at Sanand are low now,” conceded a senior official.

However, Peugeot claimed that it had only decided to postpone and reschedule its Sanand project. The company attributed this to European market situation, which had strongly hurt its cash flows. “We still believe that Sanand is going to be a successful cluster,” said a Peugeot spokesperson in an email reply.

According to government officials, Peugeot is yet to even pay for the land allotted to it at Sanand. At the recent Beijing Auto Show, Gregoire Olivier, head of Asian operations of PSA Peugeot Citroen had said that the company was exploring possibility of manufacturing cars at the Halol plant of General Motors, its new global alliance partner, and the Sanand plant plan may be scrapped.

Always a bit dubious when the "anonymous sources" come out to play in election years.

But clearly Maruti and especially Peugeot have both got a lot of internal problems going on. Lets see what actually happens, worst case scenario would be that the State Govt has an already confirmed huge site available at Sanand near to Ford/Tata Motors and DMIC to sell on to another company.

CivilEngineer079

May 17th, 2012, 08:29 AM

Biggest automobile parts hub planned in Gujarat

India's Detroit is changing gears. After top car-makers, Gujarat will now house one of country's biggest component parks.

Automotive Component Manufacturers Association of India (ACMA), the nodal agency for the country's auto component industry, plans to set up its first supplier park over 1,100 acres of land, preferably in Ahmedabad.

In a first, ACMA, which has about 700 members contributing 85% of the total output in the organised sector, will hold its executive committee meeting in Ahmedabad in June. The park aims to bring together automotive component manufacturers, suppliers and service providers in one location to achieve synergies and cost benefits.

Vinnie Mehta, executive director, ACMA, said, "This is a special meeting as Ahmedabad was not earmarked for the meeting when ACMA planned its year. The meeting and plan to set up the automotive suppliers' park in the state is recognition of Gujarat as an emerging hub for auto."

About 55 auto component manufacturing companies, including Setco Automotive, Bajaj Motors among others, have expressed interest in setting up units in the park. The investment details are being finalised.

"Almost all members of ACMA want to set up units in the park. We would like to be an integrated park, which will be a concentration of all aspects important to the auto industry," said Mehta. Analysts say the slowdown may prompt car-makers to marginally delay their plans but Gujarat's best is yet to come.

http://timesofindia.indiatimes.com/city/ahmedabad/Biggest-automobile-parts-hub-planned-in-Gujarat/articleshow/13180893.cms