Chennai's Automotive and Auto Components Industry Updates!

[chennaidesi]

Originally Posted by Arasu

Even if it is the case, they too can use the Chennai port due to close proximity of TADA to Chennai port.

Contrary to Many SSC forumars I feel if TADA grows it is 95% benefit to AP and TN can expect only 5% benefit.

In long run(about 10 years) TADA will become more visible and will start competing with Chennai.

Delhi Gurgaon and Noida are different then Chennai TADA. Because it involves different state govt sharing funds etc.

[Kewl Batty]

It'll be wise if the state govt. can creat a port in the south chennai!.. mabbe somewhere after mamallapuram.

[bharani.nitt]

at least let AP use Chennai to develop areas in AP near chennai .

TN is dumb not to exploit the proximity to Bangalore and develop Hosur

Hosur cud ve been the second Sri Perumbudur of TN had the Govt had any brains . Even now ,lots of Bangaloreans want to buy land in Hosur because cost of living is less , closer to Electronics city and better climate . I hope the Govt builds an industrial corridor in Hosur and woos investment into Hosur .

AP is smart enough to use Chennai to develop AP . TN must do the same to Hosur as AP is doing with TADA .

[chennaidesi]

Marketing for Hosur we don't lose anything but if we get something that is a bonus.

There are port plans for Cheyyar I am not sure.

[Arasu]

Originally Posted by chennaidesi

Contrary to Many SSC forumars I feel if TADA grows it is 95% benefit to AP and TN can expect only 5% benefit.

In long run(about 10 years) TADA will become more visible and will start competing with Chennai.

Delhi Gurgaon and Noida are different then Chennai TADA. Because it involves different state govt sharing funds etc.

I didn't mean that the locating auto industry in TADA will be beneficial for TN. What I meant was that your contention that AP doesn't have a well developed auto component industry and a port to export cars and therefore, TN has an edge is not a very valid one.

By locating an auto industry in TADA, AP will have access to a port (Chennai) to export vehicles and will also have access to components from Chennai. Therefore, they have the same advantages as Chennai with the added advantage of cheaper land and labour.

[Kewl Batty]

As there are three ports in Chennai - Chennai Port, Ennore Port and Kattupalli Port juzz 5 km from Ennore Port (L&T is making it a very big commercial Ship building yard cum port), its very advantageous to be located around this region.

It doesnt matter if it is in AP or TN, its the infrastructure that matters. Let this region develop into a bigger hub of automobiles.

[dis.agree]

Originally Posted by Arasu

By locating an auto industry in TADA, AP will have access to a port (Chennai) to export vehicles and will also have access to components from Chennai. Therefore, they have the same advantages as Chennai with the added advantage of cheaper land and labour.

why do you associate such cheap labour only with such auto industry? why not software companies as well? you can't just put an illiterate/farmer in a automobile shop and get the job done. developing tada with all necessary infrastructure to attract skilled labourers cannot be done over night.

[MyNation]

Chennai, March 4 Same Deutz-Fahr India Private Ltd, the wholly owned subsidiary of €1.2 billion Same Deutz-Fahr Group, will soon become the sole manufacturing facility for engines that are compatible up to Euro 3 emission norms.

The parent company plans to close down its engine plant in Italy and shift the machinery over to Ranipet, near Chennai. The Ranipet plant will make tractors for sale in China, according to Mr Franscesco Carozza, Chairman of Same Deutz-Fahr India.
Engine capacity

The company intends to spend Rs 25 crore on expanding its engine and tractor capacity at Ranipet, he said today. The engine capacity will be raised to 15,000 units from 6,000 now. Tractors capacity will go up by 1,500 units to 4,500 units.

Mr Carozza said that 70 per cent of the 1.1-million tractors manufactured globally have engines that conform to Euro-3 or lesser standards. Since these engines can be competitively produced in India, the Group has decided to shift its production to India. Same India also intends to make engines for gensets and construction equipment, he said.
Tractor launched

Mr Carozza today launched Deutz-Fahr brand of tractor — Agrolux — with 85 per cent local content. The new tractor comes with three engine capacities — 50 hp, 60 hp and 70 hp — with starting price of Rs 4.5 lakh.

The current market size for tractors over 50 hp in India is around 35,000 units and it grew four times in the last four years.

The new tractor will help Same cash in on this growth. Same India has been manufacturing these tractors for few export markets including Africa, Europe, West Asia and the US. The company also makes Same range of tractors in sub-50 hp category.

Same India will soon commence exports of tractors in all ranges to China till the Chinese facility commences production by the end of 2009.

Later, India will produce sub-70 hp tractors for Same’s global customers, while the Chinese plant will make higher capacity machines — 80 hp to 100 hp.

“Our strategy is to focus on new geographies and create hub and spoke model,” said Mr Vijay Raina, Director of Same in India.


http://www.thehindubusinessline.com/...0551730200.htm

[Arasu]

Originally Posted by dis.agree

why do you associate such cheap labour only with such auto industry? why not software companies as well? you can't just put an illiterate/farmer in a automobile shop and get the job done. developing tada with all necessary infrastructure to attract skilled labourers cannot be done over night.

In the software industry also, a programmer working in Bangalore gets a higher salary, say, a programmer with similar skills working in Coimbatore. The same programmer while working in the US gets many times more. I applied the same anology here.

In India, when jobs are scarce people are willing to move to places where they can find them. Their wages/salaries are going to depend on the location. Therefore, one would think the labourer working in TADA would cost less than the one working in Sriperumpudur. One would also think Auto companies would be able to attract skilled labourer to move to their sites.

[Elango1984]

Iochpe-Maxion (a Brazilian holding company with two main subsidiaries in the auto parts and railway equipment industries), investing 35 millions in chennai


A Iochpe Maxion informou hoje que a sua Divisão Rodas e Chassis finalizou a negociação com a Daimler Hero Commercial Vehicles, afiliada do Grupo Daimler, situada em Chennai, na Índia. O objetivo da negociação é fornecer chassis para uma família de caminhões de carga leve, que deverá ser lançada no final de 2010 na Índia.

Com isso, a Iochpe terá que instalar um nova unidade industrial na região - a Maxion Chennai - com capacidade para produção de longarinas, travessas, montagem do chassis e pintura de componentes e chassis montados.

Os investimentos iniciais serão em torno de R$ 35 milhões, podendo gerar uma receita líquida de R$ 23 milhões, a partir de 2011.

http://www.investnews.com.br/IN_News...2379366,45,1,1

http://www.gazetamercantil.com.br/GZ...2379366,45,1,1


The Iochpe Maxion reported today that its Division Chassis Wheels and finalized the negotiations with Daimler Hero Commercial Vehicles, Daimler Group's subsidiary, located in Chennai, India. The goal of negotiation is to supply chassis for a family of light truck load, to be launched at the end of 2010 in India.

With this, the Iochpe will install a new plant in the region - the Maxion Chennai - with capacity to produce side, sleepers, assembly and painting of chassis components and chassis mounted.

The initial investment will be around U.S. $ 35 million, could generate a net revenue of $ 23 million, from 2011.

[Kewl Batty]

Thats a real gud news!!

[chennaidesi]

Star Hotels can start more Samba dance centers.

[Kewl Batty]

yeah like this??

[Kewl Batty]

CHENNAI: MRP AutoRub, a rubber based auto-component manufacturer at Ambattur in Chennai, has taken the joint venture route to handle the crisis
in the auto sector.

The Rs.7.2 crore company has formed a 74:26 joint venture with US-based rubber and plastic moulded and extruded parts manufacturer Molded Dimensions (MDI).

The JV will set up a unit for producing molded products worth Rs.15 crore annually, at Kakalur in Tiruvallur district near Chennai. The facility will be created by transferring the molded products division of MRP at Ambattur. MRP will continue producing its other product - hoses, from its existing plant at Kakalur.

The products from the new facility will be sold to MRP’s traditional customers and MDI’s customers in India, and later abroad too. "Our target is to produce Rs.75 crore worth of goods annually in four years," said MRP MD R Ganesh.

The Rs 4 crore investment on the new facility would be funded through equity by the JV partners. Investment banker Worbus has handled the evaluation and the JV.

MDI, which has two manufacturing units in USA, supplies to 300 customers spread across sectors like telecom, energy, medical and aerospace, in US and European markets.

Of those, 30 have manufacturing units in India. "These customers contribute to 40% of our total revenues globally," said Molded Dimensions president Michael Katz. "The JV will make it easier for us to supply to their operations in India, and give us a cost advantage in supplying to our other markets."

MRP has taken a 40% hit in its revenues and sales since November, when its clients – commercial vehicle manufacturers like Ashok Leyland and Tata Motors – saw a drastic reduction in demand and cut production. ALL has so far contributed to 70% of MRP’s sales.

"Things have improved from February. But, it still made us realise that we can’t put all our eggs in one basket," Mr. Ganesh said. "This JV will help us in diversifying our product portfolio product as well as market."

Source : http://economictimes.indiatimes.com/...ow/4252923.cms

[SURYA]

Originally Posted by Arasu

In the software industry also, a programmer working in Bangalore gets a higher salary, say, a programmer with similar skills working in Coimbatore. The same programmer while working in the US gets many times more. I applied the same anology here.

In India, when jobs are scarce people are willing to move to places where they can find them. Their wages/salaries are going to depend on the location. Therefore, one would think the labourer working in TADA would cost less than the one working in Sriperumpudur. One would also think Auto companies would be able to attract skilled labourer to move to their sites.

Location selection is a big analysis by itself. Nobody will invest in a place if they cannot see ROI or the macro pic is not good..More than salaries which will be almost same in tada for senior / middle management due to availability of switching options in nearby chennai ,the companies would look for tax structures and favorable macro pic. All senior and middle management would stay in chennai leading to pumping of money into chennai economy.Also the vendor base will get more business which will be much more than the mother plant

[chennaidesi]

In Mechanical industries the % of people in S/Middle mgmt is less than 10%.
The only benefit Chennai will get is those people will stay here and the other benefit is people travelling abroad will use airport but even blue collar workers initially people from tamil nadu can get jobs but it will become easy to train and hire local workers within 2 to 3 years.Also people will use ports like Krishnapatinum rather than chennai which has more expensive tariff.

[Arasu]

Originally Posted by SURYA

Location selection is a big analysis by itself. Nobody will invest in a place if they cannot see ROI or the macro pic is not good..More than salaries which will be almost same in tada for senior / middle management due to availability of switching options in nearby chennai ,the companies would look for tax structures and favorable macro pic. All senior and middle management would stay in chennai leading to pumping of money into chennai economy.Also the vendor base will get more business which will be much more than the mother plant

That is right. All of these are part of the cost structure. If not for favourable tax structure, or tax holiday and cheaper land and the prospect of containing the wages, there is no attraction to locate the plant in TADA. And that is the reason why AP is finding it hard to attract auto companies.

Still it pays to offer tax incentives and cheap land so as to set up initial base based on which one can attract ancillaries and other auto companies in the future. Just like the auto companies are looking at profitability and ROI, the government will have to look at the larger social and long term econmic benefits and give up tax revenue in the short term. That is what happened in Gujarat when they gave large parcel of land at cheap prices along with tax concessions to TATA to relocate the NANO car project.

[Elango1984]

Hyundai Motor India Limited (HMIL), India’s largest auto exporter and the second largest car manufacturer, was honoured with the ‘EXIM Achievement Award’ for the year 2007 – ‘08 at a function organized by The Tamil Chamber of Commerce (TCC). The award was conferred for Hyundai’s outstanding achievement in the export-import category.

His Excellency, The Governor of Tamil Nadu, Shri Surjit Singh Barnala gave away the award to H.S. Lheem, Managing Director, Hyundai Motor India Ltd at a function in Chennai. The Tamil Chamber of Commerce was founded in 1944 and this is the first year that an EXIM achievement award has been established to honour both Private and Public sector undertakings for their achievements. Hyundai Motor India Ltd this year bagged the inaugural EXIM achievement award for the top exporter and the second place for the import category in the private sector category for the year 2007 – ’08.

Last year, Hyundai received the ‘Niryat Shree’ Silver Trophy for the year 2005-06 from the Federation of Indian Export Organizations (FIEO) as well as the EEPC ‘Top Exporter of the year’ award for the year 2005- 06. HMIL, which is the largest passenger car exporter from India accounts for over 70%% of the car exports from India. HMIL, in 1999 started exports with a batch of 20 cars to neighbouring Nepal and today it exports to over 100 countries across the globe which includes European Union, Africa, Middle East, Latin America and South East Asia.

Within the Hyundai family Hyundai Motor India Ltd has been designated as a small car hub which means that all the compact cars starting from the popular Santro (Atoz), i10 to i20 will only be manufactured here at Hyundai’s facility in Sreeperumbedur and exported globally. In addition to these models HMIL also exports the Accent.

HMIL achieved its first milestone of exporting 100,000 cars in four years and ten months in October 2004. In October 2005, it exported its 200,000 th car followed by its 300,000 th car and 400,000th car in October 2006 and August 2007 respectively. In March 2008, Hyundai crossed the half million mark for exports and became the fastest Indian manufacturer to reach this commendable figure.

Speaking on the occasion, H.S. Lheem, Managing Director, Hyundai Motor India Ltd. said, “We are honoured and extremely delighted to receive this prestigious award. We at Hyundai Motor India believe that our contribution towards the Indian...

http://www.financialexpress.com/news...mmerce/438949/

[Elango1984]

The International Centre of Automotive Technology has started its operations at Manesar in Haryana by granting approval to the country's largest carmaker Maruti Suzuki India's forthcoming model -- Ritz.

International Centre of Automotive Technology (ICAT) has cleared Ritz in a whole vehicle test approval ceremony, held recently at the test centre's premises in Manesar, thereby clearing ground for rolling out the car in the Indian market.

A division of National Automotive Testing and R&D Infrastructure Project (NATRiP), ICAT is a notified testing agency and is working towards the development of automobile industry in the country.

ICAT is currently investing Rs 440 crore in expanding its facilities at an additional area of 46 acres in its Manesar centre. The new facilities would include a power-train laboratory, engine dynamometers, emission laboratory with Euro V capability, a fatigue laboratory passive safety laboratory as well as vehicle test tracks.

Earlier NATRiP, a joint venture of the Centre, a number of state governments and the country's auto industry to create a testing, validation and R&D infrastructure, had announced to invest Rs 1,718 crore for setting up of seven auto testing facilities at seven locations across India by 2011.

Apart from ICAT, Manesar, the other six locations are Chennai, Indore, Silchar, Pune, Rae Bareilly and Ahmednagar.

http://www.mydigitalfc.com/industry/...ritz-india-498

[Elango1984]

Mitsubishi Motor Corporation's plan to produce a volume-generating compact car from India has been indefinitely deferred for lack of funds and sliding demand.

The company planned to launch the premium compact car through its technical tie-up with the Birla Group-promoted Hindustan Motors in 2011-2012.

The original plan involved either re-engineering a compact car from Mitsubishi’s global portfolio for the Indian market or building a new car from scratch, possibly for export later.

Scarcity of financing from Japan has forced both companies to cut capital expenditure (capex) for the current year and rein in investment plans for next year, which includes expansion of the Chennai facility.

To accommodate the new compact car and some other models, Hindustan Motors had planned to increase annual production at Chennai from 12,000 to 100,000 units.

Asked about its capex plans, Ravi Santhanam, managing director, Hindustan Motors, said, "The (automobile) market has become very volatile, so it’s hard to make a prediction even two months down the line. In view of this we have decided to revise our capital expenditure for 2009-10." He declined to discuss details.

Mitsubishi's premium compact car would have had to battle Hyundai's i20, Skoda’s Fabia, and yet-to-be launched models like the Fiat Grande Punto, Honda Jazz and offerings from Toyota and Ford.

Mitsubishi currently sells three sports utility vehicles (Outlander, Motero and Pajero) and two sedans (Lancer and Lancer Cedia) in India. None of these have picked up appreciable market share.

Meanwhile, Hindustan Motors is reducing its dependence on the automotive sector by investing in units for forgings, casting and spare parts, mostly for power equipment and rail manufacturers.

The company is also building an integrated township on 314 acres of land in West Bengal.

http://www.business-standard.com/ind...?autono=353470