Gujarat Auto Industries Thread

[GJ10]

Auto Majors

Location: Halol - Panchmahals District
Investment: Rs 525Cr (1992) + Rs 900Cr for expansion (2013)
Area:
Capacity: 85,000 units p/a (being expanded to 110,000 units p/a
Jobs: 2200 Direct


Location: Sanand - Ahmedabad District
Investment: Rs 2,900 Cr
Area: 1100 Acres
Capacity: 250,000 units p/a
Jobs: 10,000 (Direct+Indirect)


Location: Sanand - Ahmedabad District
Investment: Rs 4,000 Cr
Area: 430 Acres
Capacity: 240,000 units p/a expected 2014
Jobs: 5000


Location: Hansalpur - Mehsana District
Investment: Rs 4,000 Cr
Area: 600 Acres
Capacity: 250,000 p/a expected 2015
Jobs: 2000 Direct + 10000 Indirect


Location: Halol – Panchmahals District
Investment: Rs 1,100 Cr
Area: 300 Acres
Capacity: 1,200,000 units p/a expected 2014
Jobs:

Auto-Parts makers


Valeo
Details unspecified
Wiper systems, top column module, compressors and air management systems
link

Oerlikon Graziano
100 Cr, 30-35Acres, 1800-2000 jobs, 3.5lakh units per annum
Precision gears, Drive-shafts
link

Ancillary Industries

All India Plastic Manufacturers Association (AIPMA) Auto Park - Sanand
240 Acres
Expected overall investment of 5000Cr, 62 members ready to set up in Sanand as at January 2012.
link

French Vehicles Equipment Industries (FIEV) Park
For Tier-1 and Tier-2 auto component suppliers from France
link

[GJ10]

Tata Motors brief history

Gujarat will be new home for Tata Motors 10 Jul 2008
Construction of Nano Plant at Sanand begins 08 Nov 2008
Deal is out: Win-Win for Tata and Gujarat 11 Nov 2008
Photo Gallery of Inauguration 2 June 2010

[UMANGSHUKLA]

This Thread Rocks !!

[GJ10]

Ford

Ford to invest $1bn in Gujarat plant

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.

[GJ10]

Peugeot

PSA Peugeot-Citroen inks pact for 4000 Cr Sanand facility, to employ 5000 people

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.

[GJ10]

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

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

Auto firms looking closely at Gujarat

• 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]

Sanand now in Auto-hub league

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]

Originally Posted by GJ10

Sanand now in Auto-hub league

TN threads are burning...
Congrats Sanand anyways

[chennaidesi]

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

[UMANGSHUKLA]

Originally Posted by chennaidesi

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

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]

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

[kp.muthu99]

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

Originally Posted by chennaidesi

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

[UMANGSHUKLA]

Originally Posted by kp.muthu99

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

[vibrant]

Deleted

[Aditya Jadeja]

Originally Posted by kp.muthu99

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...!!

[GJ10]

Peugeot-Citroen gets offers similar to Tatas Nano project in Gujarat

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.

[meetmus2fa]

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/gu...of-the-region/

[NitinPatel]

Ford kicks off construction of Sanand car plant






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]

Ford plant site:

Copyright Getty Images

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]

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




Location of the 3 plants: