State woos major auto-makers

BY V L SRINIVASAN

Published on Oct 11, 2006

Hyderabad: Even as the automobile industry is gearing to invest more than Rs 30,000 crore to meet the rising demand in the next four years, the Andhra Pradesh Government has decided to invite half a dozen major auto players to set up their units in the State.

The State Government is planning to write to automobile companies, including Maruti Udyog, Hyundai Motors, Honda Siel, TVS Motors, Hero Honda and Tata Motors, requesting them to invest in Andhra Pradesh in view of the high quality infrastructure facilities that would be in place in less than 18 months.

While Maruti Udyog is planning to invest around Rs 9,000 crore to launch a new small car besides increasing the production of diesel cars from the existing one lakh to three lakh per annum, Honda Siel has decided to start its second plant at a cost of Rs 900 crore to produce one lakh small cars.

Similarly, TVS Motors has plans to invest Rs 450 crore for its two and three wheelers and Tata Motors is looking forward to plough in around Rs 12,000 crore to increase its manufacturing capacity and also introduce new vehicles.While Hero Honda Group is awaiting permission from the Rajasthan Government to open its third plant to double the production of two and four wheelers from the existing 1.5 million units per annum, Hyundai Motors India also wants to double the production from three lakh vehicles besides increasing its exports from 33 to 50 percent by 2008. Even the US auto component major Delphi Automobiles is planning to set up its global Research & Development base in India.

‘‘Besides land, infrastructure like airports at Hyderabad and Visakhapatnam, dedicated deep water port at Gangavaram, power at competitive prices, availability of skilled manpower and existing auto and auto component industrial base, besides abundant raw material – steel and and iron – for the industry is also readily available,’’ officials told ‘Express’.