Chennai's Automotive and Auto Components Industry Updates!

[georgenadar]

Originally Posted by tokavin

Michelin has another plant at Maharashtra? If it shifts the production from existing plant at Maharashtra , then it could be the another samsung in the making

Michelin Tires India (Tamil Nadu) told ET, "We are attracted to TN both from the people and professional point of view. It has a very good manufacturing environment and offers multi-model connectivity. Besides the availability of good people and professionals, the State has a good educational system and recreational facilities".

[sridhar_n]

Hats off to TN govt for having bagged Michelin. Hope JK Tyre (in proposal stage), Proton (in pipeline / news for almost a decade now), Mahindra (already announced), Peugeot (still not decided on the project) and other auto majors also come to TN.

But lets also understand that we need to strengthen the infrastructure so as to retain existing industriesand also attract new industries. Rail link to Sriperumbudur, Elevated highway from Maduravayol to Port, development of ChPT and also Ennore and such other infrastructure becomes paramount now.

TN govt should come out with a master plan in this regard and go for Public - Private partnership to develop these infrastructure needs.

[kg4129]

Weldone TN, MK and MK stalin....

[ezhilan81]

Originally Posted by georgenadar

Michelin Tires India (Tamil Nadu) told ET, "We are attracted to TN both from the people and professional point of view. It has a very good manufacturing environment and offers multi-model connectivity. Besides the availability of good people and professionals, the State has a good educational system and recreational facilities".

Recreational facilities?? I thought Chennai as a city still lacks recreation. Not sure what they exactly mean.

[Arul Murugan]

http://en.wikipedia.org/wiki/Recreation

Please evaluate Chennai yourself with those examples. One has to accept that Chennai as a city still don't have much/no bars/pubs and sex shop recreation world which we really don't want and government cannot do anything for that.

[nsantha2]

Originally Posted by Arul Murugan

http://en.wikipedia.org/wiki/Recreation

Please evaluate Chennai yourself with those examples. One has to accept that Chennai as a city still don't have much/no bars/pubs and sex shop recreation world which we really don't want and government cannot do anything for that.

Speak for yourself, I have no problems with any of these. It's just that the demand is not high enough to justify opening on in Madras.

[Arul Murugan]

When there is no demand, it shows people are not interested! My post "we" was reflecting about that and I didn't stop you or others! And we can put a full stop as this is not the right thread to discuss.

[satishanu]

South Korean car-maker Hyundai will invest around Rs. 800 crore to develop a small car for the Indian market that is likely to be launched in the next two years.

The firm, which has operations in India through a wholly-owned subsidiary, Hyundai Motor India Ltd, will manufacture the car, which will be smaller than the Santro, at its plant here.

“We are developing a small car and approximately Rs. 800 crore will be invested at the Korean plant for development,” newly appointed Managing Director and CEO of Hyundai Motor India Ltd (HMIL) Han-Woo Park told reporters.

India – a small car hub

He declined to give any details, but said: “It will be smaller than the Santro and the price will also be lesser. It will take at least 24 months from now to launch the car in India. Right now, it is in the design stage.”

“Initially it will be targetted at India but gradually it will also be exported,” Han-Woo added.

“It will be manufactured at the Chennai plant once the design gets completed,” he said.

HMIL, which sells popular compact cars like Santro, i10, i20, has made India a small car hub for the Korean firm and has been exporting the cars to overseas markets.

In October, the company sold a total of 51,736 units, an 11 per cent growth compared with same month last year. Its exports, however, dipped by 11.9 per cent to 23,435 units during the month.

Source: http://beta.thehindu.com/business/article50108.ece

[Subra]

http://www.cbc.ca/money/story/2009/1...o-chennai.html

India must think small to stay big," the head of India's largest conglomerate, Tata Group, quipped recently.

It was a throwaway line by Ratan Tata, the chair of Tata Group and one of the world's richest business leaders. But despite its pithiness, it contains a kernel of truth — at least in terms of India's burgeoning auto industry.

Hyundai, whose tiny Getz cars are shown here waiting to be exported to Europe, is just one of several auto companies building cars in the southeastern port city of Chennai, which is turning into India's Detroit.

In early 2008, Tata's automotive division unveiled its much-anticipated vehicle, the Nano, to the masses. With a price tag of $2,500 US, it brings car ownership within reach for hundreds of millions of people who otherwise would never consider buying a car.

Luxurious, it is not.

With a flat nose and sloped roof, the world's cheapest car can theoretically fit five people. Tata claims it's more fuel efficient than some motorcycles and meets all emission standards in developed countries, but to be sure, the basic version is Spartan: no radio, no passenger-side mirror and only one windshield wiper, for the driver. Air conditioning for muggy Indian summers is extra but included in the deluxe edition of the vehicle.

The company, the first Indian engineering firm to be listed on the New York Stock Exchange, has numerous manufacturing centres across India and throughout the world. While the Nano is made at several of them, the city of Chennai is fast becoming the next great automaking hub.

'The existing hubs need to watch out for Chennai as an upcoming production base, and probably a Detroit for South Asia.'
— V.G. Ramakrishman, economist. The industrial city on India's southeastern coast is a manufacturer's dream. Multinational giants such as Ford, Hyundai and Chrysler have already set up shop there, eager to take advantage of Chennai's huge deep-water port, affordable land and cheap labour.

"The existing hubs need to watch out for Chennai as an upcoming production base, and probably a Detroit for South Asia," economist V.G. Ramakrishman of auto consultancy Frost & Sullivan says.

Luxury cars becoming popular among wealthy Indians
The local Hyundai factory, the most automated plant in India, has three shifts working around the clock and closes only on Sundays. The plant makes 2,100 cars a day, and as with Tata's Nano, its best-selling model is the tiny Hyundai Getz.

The cars India is cranking out at a blistering pace are being bought locally (demand is so strong that more than 500,000 people recently entered a lottery to win the right to buy a Nano), but they're also finding their way overseas to dealerships in Europe.

Conversely, high-end European cars, such as Rolls Royce and Mercedes Benz, are finding a market among suddenly affluent Indians.

"The earlier generations might find it difficult to flaunt wealth," Mercedes dealer Mohan Mariwala says. "Today, it is: you worked hard for it, so might as well show it, and might as well enjoy it."

Ashok Vichare, right, owner of the first Tata Nano car sold in India, greets the crowd as Ratan Tata, chairman of the Tata Group of companies, applauds. (Rajanish Kakade/Associated Press)
In 2005, Tata inked a landmark deal to produce cars and drivetrains for Chrysler's current owner, Italian carmaker Fiat. Thus far, few Indian-made cars have made it to the North American market, but that day, too, is coming.

Considering the dazzling growth India has experienced over the past few years, Canada has lagged behind in terms of investing in the country.

The combined GDP of the two countries is on its way to $4 trillion, and yet two-way trade between India and Canada is just $5 billion, Prime Minister Stephen Harper noted at a press conference on his trade mission through India on Monday.

As it stands now, there's more Indian investment in Canadian firms than the other way around. But with the breakout success of the Nano, India's entrepreneurs and politicians are hoping that trend will soon start moving in the opposite direction.

[Subra]

http://www.expressindia.com/latest-n...ndia--/543276/

New Delhi Reversing his predecessor's decision to set up a diesel engine facility in Chennai, Hyundai Motor India's new Managing Director and CEO Han-Woo Park on Wednesday said as of now there was no such plan.
"As of today, I do not consider a diesel plant, I do not have any idea. If the diesel market expands, then we will consider," he told reporters here.

However, launching the diesel version of hatchback i20 in July this year, Park's predecessor Heung Soo Lheem had said: "Currently we are importing diesel engine from Korea. The production (from) the diesel plant in Chennai will start by the end of 2010."

The new MD added that the company is currently carrying out a feasibility study for the plant, but remained non- committal on setting up the facility.

"We are doing feasibility study for a diesel plant. But we need some volume for the diesel plant, without volume we cannot have an engine (diesel) plant. It will need huge cost.

If we reach some diesel volume in India, then we can consider the plant... Nothing is happening now," he said.

On shifting production of its latest offering i20 to Europe for exporting to the region, HMIL Senior Vice-President (Marketing and Sales) Arvind Saxena said manufacturing of the car would start in Turkey in the second half of 2010.

"Part of i20 production will be shifted to Hyundai's plant in Turkey during the second half of next year, mostly to cater to demands in the European markets. I think, around 50,000 units will be produced there annually," Saxena added.

The company currently produces one lakh units of i20 in India, of which 30 per cent is for the domestic market and the rest for overseas sales.

Park said the company, which is the largest car exporter from India, will be emphasizing more on the domestic market and hopes to increase the share of its sales here.

"Currently, HMIL has a 50:50 share in sales in the domestic market and exports. We are going to focus more on the domestic market and the proportion of domestic versus overseas sales could change to 60:40 next year," he added.

The company is expecting about 13-14 per cent jump in its domestic as well as exports this year with a target to sell a total of 5.6 lakh units in 2009.

HMIL is also increasing its dealership base in the country to 320 outlets by 2010, from 274 at present.

[think_different]

Sundaram Brake Linings Ltd, part of the TVS Group, has planned to increase production capacity of friction material (brake linings) by 3,000 tpa to 23,000 tpa. The project is estimated to cost Rs 21.50 crore, out of which Rs 17.50 crore will come as debt from banks while the remaining will be contributed from internal accruals.
Speaking to Projectmonitor, an official spokesperson of Chennai-based SBL said that the expansion would be carried out at the unit located within the Mahindra World City special economic zone, 50 km from Chennai on NH-45, in Kancheepuram district. With project work likely to begin soon, the expansion project is scheduled for completion by the third quarter of fiscal 2010-11.
The capacity expansion is geared to meet export demand. Elaborating on the existing infrastructure, the official said that SBL has four manufacturing units—one each at Mahindra World City and Chennai (at Padi), and two at Madurai (TSK Puram). "Our total capacity across all four units today stands at 20,000 tpa," he said. The individual capacity of SBL's Mahindra World unit, the company's latest production facility, was not immediately available.

source

[think_different]

[darkprinz]

Originally Posted by think_different

Ya it will be awesome .. i have seen these in Ford .. when i went to Ford india plant for student Industrial visit on behalf of CII

[rsubbu.mdu]

Originally Posted by darkprinz

Ya it will be awesome .. i have seen these in Ford .. when i went to Ford india plant for student Industrial visit on behalf of CII

Hi Darkprinz,

This Robot welding machine in the body shop was installed at Ford India just one year back.If u had gone earlier then u might have seen the other Robot which is used to apply Polyurethane on the windshield in the TCF line.


Subbu

[darkprinz]

Originally Posted by rsubbu.mdu

Hi Darkprinz,

This Robot welding machine in the body shop was installed at Ford India just one year back.If u had gone earlier then u might have seen the other Robot which is used to apply Polyurethane on the windshield in the TCF line.


Subbu

hi subbu

Ya i went this august 09 only ..

[rsubbu.mdu]

Originally Posted by darkprinz

hi subbu

Ya i went this august 09 only ..

Then u r bang on !...i was working in that plant till May 2008.


Subbu

[profitable]

All this talk of Chennai becoming the next Detroit is a bit worrying to me, especially if one considers what has happened to Detroit over the years. It is now slowly becoming a ghost town isn't it? The TN gov't should think long-term... these big businesses are like swarms of locusts if left unregulated.

[ezhilan81]

Originally Posted by profitable

All this talk of Chennai becoming the next Detroit is a bit worrying to me, especially if one considers what has happened to Detroit over the years. It is now slowly becoming a ghost town isn't it? The TN gov't should think long-term... these big businesses are like swarms of locusts if left unregulated.

Dont worry too much dude, our govt has been intelligent enough to concentrate on other manufacturing sectors as well. So hopefully we wont be a repeat a present day Detroit

[Mad 4 Madras]

Originally Posted by ezhilan81

Dont worry too much dude, our govt has been intelligent enough to concentrate on other manufacturing sectors as well. So hopefully we wont be a repeat a present day Detroit

Thats true. Chennai, unlike any other metros has strong foot on diversified economies of Automotives, Auto Components, IT and Services, Finance - Trade and Commerce (traditionally), can be called Health Care Capital of India, Manufacturing - R&D centres, Biotechs and Leather Institutes, Sports portfolios and none the less Tourism...

Chennaites can be proud of its large foundation...but the real show of building is yet to come...
The same is common for whole of Tamil Nadu

[robertashok]

Originally Posted by Mad 4 Madras

Thats true. Chennai, unlike any other metros has strong foot on diversified economies of Automotives, Auto Components, IT and Services, Finance - Trade and Commerce (traditionally), can be called Health Care Capital of India, Manufacturing - R&D centres, Biotechs and Leather Institutes, Sports portfolios and none the less Tourism...

Chennaites can be proud of its large foundation...but the real show of building is yet to come...
The same is common for whole of Tamil Nadu

With so many Industries, the number of people working has gone up,so too the salary, i guess the GDP of tamilnadu should have grown tremendously, not sure if it has lead to the increasing consumption of whitegoods and semi-luxury goods. if that is not the case, the big culprit is the INFLATION.