Chennai's Automotive and Auto Components Industry Updates!

[Kewl Batty]

Chennai- "the Detroit of South Asia" is the leading automotive hub in india with a base of over 30% of India's automotive industry and 35% of its auto components industry.

Being one of the top 10 Automotive hubs in the world, Chennai's AI is
projected to be around $15-$20 billion by 2015.

The Vision is to make it one of the top-3 automotive hubs of the world by 2015.

Lets first list the Major automotive companies in this hub.

[Arul Murugan]

Kewl,

what about Sriperambadur and Oragadam project updates thread?

[Kewl Batty]

Originally Posted by Arul Murugan

Kewl,

what about Sriperambadur and Oragadam project updates thread?

That's for all the industires.. mainly auto, electronics, biotech and others in tat region.

Here we can concentrate only on auto industires which is present not only in Sriperumbudur and Oragadam area but also in avadi, Thiruvallur, Chengalpattu and other areas.
Hope I'm clear!

[Kewl Batty]

India Pistons
Wheels India
Brakes India
Sundaram Clayton
Rane Group
Hyundai
Ford
BMW
Mitsubishi
The TVS Group (TVS)
Ashok Leyland
Nissan-Renault
TI Cycles of India
TAFE Tractors
Royal Enfield
Caterpillar
Apollo Tyres
Madras Rubber Factory(MRF)

[Rasnaboy]

How about these...?

Caparo Forge
Dunlop Tyres
Michelin Tyres
Daimler

[Kewl Batty]

yup, yup... keep posting!

[Kewl Batty]

article about Chennai's automobile industry

Detroit's Next Big Threat

By Sebastian Mallaby

Monday, December 5, 2005; Page A21


CHENNAI, India -- The next wave of globalization is swelling here, in this southern Indian city that was battered by a real wave during last year's tsunami. This new wave is not about Gap T-shirts or Dell laptops, the poster children for the light industries that already have global supply chains. And it is not about software and/or call centers, the industries for which India is famous. Instead, this new globalization is about heavier manufacturing, particularly cars. Detroit's panicking firms know it.

Cars? They are not what spring to mind when you say "Indian economic miracle." India's economy has grown at more than 6 percent per year since market reforms began in 1991. But it has scrambled the classic transition from agriculture to manufacturing and then eventually to services. Indian agriculture has indeed shrunk from 30 percent of output to 22 percent since the reforms began. But manufacturing has not increased its share. The entire shift has been to services.

You can see why this is so the moment you arrive in Chennai. On Saturday the airport was teeming; the roads are always an exuberant mess; businessmen complain about the creaking infrastructure. Compare that to Ningbo, a medium-size coastal Chinese city I visited six months ago, where the roads, airport and docks are all new and shiny. In the just-in-time manufacturing culture, delays mean money down the drain. That's why China is the manufacturing platform for the world -- and why India, so far, isn't.

Chennai also shows why India succeeds in software and services. To do software, you don't need a broad infrastructure base; you need one functional building. I visited Tidel Park, a gleaming office block here that houses 31 software firms, two-thirds of which are foreign. There aren't any power cuts here because the building has its own backup generators. There are no connectivity worries because it is served by six competing broadband providers. And it certainly is safe. Tidel Park boasts 150 guards and a security control room that would not look out of place on Darth Vader's Death Star.

Chennai's boosters say they've learned some Chinese lessons. Jayalalithaa, the authoritarian former actress who leads the state government of Tamil Nadu, has thrown money at the infrastructure deficit. When government workers went on strike, Jayalalithaa turned a bit Chinese and arrested thousands of them. (Although her Bollywood career was based on eye-fluttering and dance, she makes California's governator look like, well, a girlie man.) Chennai is also proud of its new Special Economic Zones, modeled on China's tax-free export hubs. The promotional literature promises "complete freedom in fixing working hours" and a chance to "totally eliminate any unlawful/illegal strikes."

This tough approach may be good for manufacturing investment. But the main force behind the next globalization wave comes from something different. Until the reforms of the 1990s, India had good engineers but lousy manufacturing because high tariff walls made its firms complacent. But the opening of India's economy has forced its manufacturers to reinvent themselves.

Chennai's auto-components firms have done this almost manically. Ten years ago, their brakes and valves were crummy enough to scare away the international car majors that considered manufacturing in India. Today, you can't spend an hour with any of the components firms without hearing about the international quality certifications they've amassed; the Deming Prize, awarded for manufacturing excellence by a Japanese committee, has acquired talismanic status. Much as Chennai's government leaders look to China, the city's business leaders pepper their conversation with Japanese management lingo.

The results are dramatic. The TVS Group, the largest of India's auto-components firms, now exports around a third of its output -- proof that it meets international standards. The rival Rane Group reports that it has reduced defects from 10,000 parts per million to 250 and that 28 percent of its engine valves are now exported. One of the TVS companies, Sundram Fasteners, has won a General Motors "Supplier of the Year" award five times, and it supplies 100 percent of GM's radiator caps.

Because Indian car parts are now reliable, international car majors have reversed their attitude. Ford and Hyundai have opened factories in Chennai; BMW recently announced that it would follow; Volkswagen and GM seem interested. Multinational parts makers are arriving, too, strengthening Chennai's attraction as a hub. Saint-Gobain, a French glassmaker, has built a brand new production line that may foretell Chennai's future. It's designed so that the initial capacity of 500,000 windshields per year can be cheaply scaled up to 3 million.

In short, Chennai's car industry is reaching critical mass, and its output is good enough to compensate for dodgy (though improving) infrastructure. The same story is playing itself out in India's two other automotive hubs, around Delhi and Mumbai, and to an even larger extent in Mexico, Thailand and (yes) China. The McKinsey consultancy projects that the outsourcing of car parts, relatively limited until now, will sextuple from $65 billion in 2002 to $375 billion in 2015, with India's share soaring from around $1 billion to $25 billion. If you think Detroit is ailing now, wait until you see what's coming.

Source:http://www.washingtonpost.com/wp-dyn...120401094.html

[kannan infratech]

Sorry to prick the baloon.

Almost all the auto industries planning to start the operations in Chennai are going slow in implementing their new projects due to the steep drop in the requirements.

The delay may be upto 2 years minimum to start operations from the date of their planned start date.

Result of Global Financial melt down, IT melt down, Satyam factor et al.

[pdykid]

Originally Posted by kannan infratech

Sorry to prick the baloon.

Almost all the auto industries planning to start the operations in Chennai are going slow in implementing their new projects due to the steep drop in the requirements.

The delay may be upto 2 years minimum to start operations from the date of their planned start date.

Result of Global Financial melt down, IT melt down, Satyam factor et al.

Please don’t add Satyam scam for the impact of auto industry.

It’s correct to say Global financial crises. All over the world automobile sales plunged heavily. In Germany industry people got paid holiday to reduce the production some allied Parts Company shut down completely. In UK its same case, Nissan set to cut third of British work force. And Jaguar and Land rover (TATA) looking for govt financial help to run business.

So, we (Chennai & India) have the impact as well. They try to scale down project size and delay the project.

Its nothing do with Satyam. May be this scam something new to India and in this sector and in this scale. So, everybody talk too much about this.

Simply Sataym factor started two weeks ago, Global financial crisis and recession in developed countries started few months ago.

[Kewl Batty]

Originally Posted by pdykid

Please don’t add Satyam scam for the impact of auto industry.

It’s correct to say Global financial crises. All over the world automobile sales plunged heavily. In Germany industry people got paid holiday to reduce the production some allied Parts Company shut down completely. In UK its same case, Nissan set to cut third of British work force. And Jaguar and Land rover (TATA) looking for govt financial help to run business.

So, we (Chennai & India) have the impact as well. They try to scale down project size and delay the project.

Its nothing do with Satyam. May be this scam something new to India and in this sector and in this scale. So, everybody talk too much about this.

Simply Sataym factor started two weeks ago, Global financial crisis and recession in developed countries started few months ago.

Yup, Satyam has nothing to do with automotive industry!

I guess only Renault has freezed its investment but Nissan is goin ahead with plant..

[Kewl Batty]

This is a cool news at this scenario!

CHENNAI: State-owned promotional agency, SIPCOT, is in the final stages of granting

the in-principle clearance to Michelin, one of the
world’s largest tyre makers, for setting
up a mega project near Chennai and the company is likely to start construction next month.

The state government has alienated 1,122 acres at Thervaikandikai in Thiruvallur district. SIPCOT has earmarked 290 acres for the tyre major, its MD N Govindan told ET on the sidelines of the three-day Pravasi Bharatiya Divas 2009.
The deal will mark Michelin’s foray into the Indian market.

The MNC had earlier announced plans to set up operations in Maharashtra. It has been servicing the Indian truck market with imported tyres and was a technical and financial partner for Indian tyre major MRF at one point.

The plant site is near the NH5 Chennai-Kolkata highway. The company identified this location in November-December as it is situated within 40 km of the city and is near the sea port, he said.

The investment by Michelin is expected to give a fresh impetus to industrialisation in the region. There are already a large number of units at the Gummidipoondi complex, besides Thiruvallur and Arkonam.

Michelin has more than 1.15 lakh employees and sales organizations across more than 170 countries, including India. It designs, manufactures and sells tyres for airplanes, automobiles, bicycles, earthmovers, farm equipment, heavy-duty trucks, motorcycles and the US space shuttle at 69 production sites, situated at 19 countries across five continents.

The company also publishes travel guides, hotel and restaurant guides, maps and road atlases and offers electronic mobility support services, on ViaMichelin.com. Moreover, it pursues research and innovation development at technology centres in Europe, USA and Japan, according to its website.

Source: http://economictimes.indiatimes.com/...ow/3954332.cms

[Kewl Batty]

NEW DELHI: Takata Corporation, engaged in the manufacture and sale of safety

systems for automobiles, including seatbelts, airbags, and
steering wheels, has
entered into a joint venture agreement with Anand Automotive Systems to manufacture airbags, seatbelts and steering wheels in India for the OEMs. The JV company, Takata India Pvt Ltd, will be majority owned by Takata Corporation.

In June 2007, after receiving an approval from the Foreign Investment Promotion Board (FIPB), Takata Corporation established Takata India as a wholly-owned subsidiary in India.

Subsequently, the company began the construction of a new plant in Chennai and is also planning to build another plant at Neemrana, near Delhi. Both plants will manufacture seatbelts, airbags and steering wheels, and will cater to the Indian domestic automobile companies.

Anand Automotive Systems manufactures a variety of automotive components and systems including shock absorbers, filter systems, engine components, drivetrain products, exhaust systems, climate control & engine cooling systems, brakes, friction materials and adhesives, among others. It has 42 manufacturing facilities in India with an extensive customer base in OE and aftermarket.

With Anand’s manufacturing and sales know-how and deep knowledge of the Indian automotive market, Takata India will further strengthen its base for manufacturing and supplying safety systems for automobiles in India, an area where demand is expected to grow as awareness of automobile safety rises and the government regulation becomes stricter.

Source: http://economictimes.indiatimes.com/...ow/3938206.cms

[Kewl Batty]

This news tells clearly that only Renault has put on hold its production but Nissan is continuing it.. Also the construction work is on!!
Source :http://economictimes.indiatimes.com/...ow/3970280.cms

[Rasnaboy]

Well. Let's add Takata to our list.

[Kewl Batty]

Originally Posted by Rasnaboy

Well. Let's add Takata to our list.

yup Complanboy, Takata entered Indian markets thru its chennai plant.. And I heard Naza also forayin into indian markets by a plant in chennai... not sure abt the status of it.. (BTW, Naza is a malaysian automobile industry)

[Kewl Batty]

Federal-Mogul to set up plant in Chennai.

Chennai, Aug 7 Federal-Mogul Corporation on Thursday announced it is planning to build a new facility in Chennai for the manufacture of friction components for original equipment and aftermarket segments. The operation is scheduled to begin production of light vehicle brake and friction components, commercial vehicle and railway friction products by September 2009.
Company markets



Federal-Mogul currently manufactures products at six operations in India, including pistons, rings, liners, bearings, ignition and sintered products for both OE and aftermarket customers.

The locations are in Bangalore, Bhiwadi, Khandsa, Parwanoo and Patiala. “Federal-Mogul’s ‘Ferodo’ brand of friction products have been manufactured in India since 1995, although the new friction facility will be the first in the Chennai region,” says a press release from the company.
Facility building


Federal-Mogul’s wholly-owned subsidiary in India recently signed a memorandum of understanding with New Chennai Township Pvt Ltd — a subsidiary of MARG Ltd, a major Indian development company — to buy 10 acres of land on which it will build the 6,000-sq metre facility.

The plant will be built in three phases and will eventually total 15,000 sq metres and create approximately 500 jobs.

“This new greenfield facility is another example of Federal-Mogul’s commitment to grow its manufacturing footprint in India,” said the Federal-Mogul President and Chief Executive Officer, Mr José Maria Alapont.

“Products manufactured at the new facility will be for both local vehicle manufacturers and for export to the global automotive market.”

Source: http://www.blonnet.com/2008/08/08/st...0851470200.htm

[Kewl Batty]

This plant is coming up in pillaipakkam.

CHENNAI: The Ashok Leyland, Nissan light commercial vehicle (LCV) project crossed

a significant milestone on Monday with the signing of MoU
with the TN government. It
will be acquiring 380 acres to locate their facilities at Pillaipakkam, 40 KM from Chennai. The integrated plant will be utilized to set up vehicle and powertrain manufacturing facilities and a technology development unit for the three companies which the partners had floated in May this year.

The first vehicle from the plant, which is coming with a total investment of Rs 4,150 crore, will be rolled out in 2010-11. The facility, which will make one lakh LCVs a year in the first phase will ramp up capacities to manufacture 1.90 lakh vehicles on peak production. Exports are expected to account for 20% of the first phase, a Leyland statement said.

The MoU was signed by the state's industries secretary MF Farooqui and R Seshasayee represented Ashok Leyland while Andy Palmer, corporate V-P of Nissan was the other signatory. It was signed in the presence of the CM M Karunanidhi.

A TN government release said that the Pillaipakkam unit will employ 4,500 people as direct employees, while another 13,500 indirectly. Ashok Leyland and Nissan announced the formation of three JVs in May this year, one each for manufacturing, powertrain and R&D.

In a related development, the Hinduja group's flagship company also announced its expansion plans in Medium Duty Vehicles (MDV) capacity across its existing plants in Ennore and Hosur in Tamil Nadu and new locations including an undisclosed greenfield plant near Chennai.

Source: http://timesofindia.indiatimes.com/I...ow/3460264.cms

[greatshankar]

Peugeot Plans to Comeback to India

PSA Peugeot Citroen intends to re-enter the Indian market. The French company is not only interested in setting up a manufacturing plant but also supplying auto components in India. The company has set up its dedicated office in Chennai for the auto component sourcing business. The company has already had a meeting with officials of Society of Indian Automobile Manufacturers (SIAM) and has begun its sourcing through Magna Steyr. Peugeot’s sibling Citroen is also planning to make its mark in the Indian auto market by selling small cars in the country.

Citroen had exited Indian car market nearly a decade ago but is ready to try its luck once again in the country. According to the industry sources, there is high possibility of PSA Peugeot Citroen making a comeback with its range of small cars and mid-segment sedans soon. The company is currently studying the 1.5 million Indian passenger car market. The team members of Peugeot have met SIAm and shall present their report to the company in Paris. The company is looking at Joint Venture or 100 percent subsidiary options but nothing is expected to materialize very soon.

[Elango1984]

The expat population in Chennai has surged significantly in the last decade, standing at well over 35,000 now. With MNCs involved in
long-gestation projects, focus is shifting from physical infrastructure to social infrastructure.

When Hyundai hoisted its flag in the Sriperumbadur industrial corridor in the mid-nineties, the Korean community too swelled in the metro. So much so that the Kilpauk area of the city was identified as ‘little Korea.’

Likewise, decades ago, the idea of building a ‘little Japan’ took a backseat for procedural and bureaucratic reasons. However, this has not stopped Japanese MNCs from looking at newer models to accommodate their employees. They found emerging corridors such as Old Mahabalipuram Road (OMR) and East Coast Road (ECR) ideal for their lifestyle. These locations saw newer residential formats with realtors striking unique deals to cater to expats.

Under the contract between Nissan and Plaza Realty, for example, 60 apartments (30 villas and 30 apartments) of Green Acres in Perungudi, a 239-apartment-cum-villa complex, were taken on a 2.5 year lease agreement.
Says the Rs 120-crore realty company’s marketing head S Srivatsan: "It took four months to formalise the deed. Some of the owners later engaged us as lease managers. Nissan is the lessor."

The leased accommodation is furnished in all respects. It is almost a plug-and-live experience for the expat community, which also has access to a 3,000-sq ft-centralised Japanese kitchen within the complex. Rentals for an apartment (1,500 sq ft) is Rs 45,000 per month whereas it is Rs 75,000 for a villa (2,000 sq ft).

Plaza is now planning to replicate the model in Sholinganallur, counting on the Ashok Leyland-Nissan venture in TN which is expected to gain momentum soon. "We have 9.5 acres and our idea is to just cater to a niche segment. We propose to have 80 to 100 villas and the price points would be in the Rs 90,000 to Rs 1.40 lakh bracket," Mr Srivatsan told ET.

On ECR, Japanese bearings major NSK has housed ten employees in an upmarket residential complex, where monthly rentals rule at Rs 40,000. The Japanese population of 130 in the city has been steadily rising especially in south Chennai, said a company official. Once the Nissan project takes off in full swing, the figure is expected to touch 200.

The state government has been trying to accelerate the process of forming country clusters for about six months now. Says a senior bureaucrat: "Since the government is working on the infrastructure, companies are willing to come in. Authorities are according top priority to social overheads like schools and housing for expats. A 1,000-acre area can be divided into four clusters, where the common infrastructure such as schooling and housing can be tailored to suit the expat community. Sooner or later, it will happen."

Six countries — Japan, Taiwan, Finland, Korea, France and Germany — have made sizeable investments in the state, which now has global brands such as BMW, Dell, Ford, Hyundai, Nokia, Renault-Nissan and Samsung.

The first three countries have been pushing for cluster accommodation for some time now. A policy note of 2007 has also clearly spelt out promotional efforts to bring in country-specific clusters. The city has 40 consulates.


http://economictimes.indiatimes.com/...ow/3983788.cms

[tokavin]

New Delhi (PTI): Buoyed by strong retail sales in December, Hyundai Motor India Ltd (HMIL) on Thursday said it expects to commence normal output with three production shifts by the second half of the year despite the market slowdown.

"In December we had retail sales of 32,000 units and it helped in clearing all our dealer inventories. The market, however, continues to be tough. After the first quarter of this calendar we will have a clear picture," HMIL Managing Director H S Lheem told reporters here.

While reiterating that till March the company will continue with its two shift production schedule, he said, "Maybe, in the second half of the year we can return to three shift production."

The company had last month announced that it was going in for a two shift production at its Chennai facility, which has a capacity to produce six lakh units annually, due to a demand slump, mainly from export markets.

Lheem said this calendar year the company expects to sale a total of 2.3 lakh units in the domestic market, the same as it did last year.

The company today launched an upgraded version of its luxury sedan Sonata priced between Rs 13.9 lakh and Rs 15.9 lakh as it looks to enhance its position in the bigger car segment.

The new 'Sonata Transform' will be available in 2.4 litre petrol engine priced at Rs 13.9 lakh and two litre diesel engine priced at Rs 14.89 lakh and Rs 15.9 lakh.

"It is our endeavour to constantly upgrade our products. With the new Sonata we are looking to enhance our position in the luxury sedan segment," Lheem said, adding the company was aiming to sell about 1000 units of the new Sonata.

Asked if the company has finalised on a price hike as it had indicated earlier, HMIL Senior VP Marketing and Sales Arvind Saxena said: "We have not yet taken a final decision."

The current market slowdown has also forced the company to postpone bringing in its sports Utility Vehicle SantaFe.

"Our feasibility study indicates that it is not the right time to bring big vehicles. So we have decided to delay the launch," Lheem said, adding that HMIL was also still assessing the market to bring a replacement for its mid-end sedan Elantra either with i30 or Avante.

In order to boost the export orders, Lheem said HMIL is exploring new markets.

"Australia, New Zealand and Saudi Arabia are new markets that we are looking at. Also I will be going to Mexico, Colombia and Chile to work out ways to increase volumes from these markets," he said.

www.hindu.com/thehindu/holnus/006200901152036.htm