India has become one of the most preferred designing and manufacturing bases for most global auto OEMs for local sourcing and exports owing to the growing presence of global automobile
Original Equipment Manufacturers in the Indian manufacturing landscape. And, this has greatly increased the localization of their components in the country.
The 57-billion-dollar Indian Auto components industry is anticipated to reach USD 200 billion by 2026. The Auto components industry exports are anticipated to grow at an annual rate of 23.9 percent and reach USD 80 billion by the year 2026.
One of the biggest auto components manufacturers in India is Tamil Nadu, with cities such as Chennai and Coimbatore contributing around 35 percent of the total auto component production. The Tamil Nadu auto component industry has contributed over 2.3 percent of the country’s GDP and stood at USD 49 billion market value during the fiscal year 2018-19.
The state of Tamil Nadu has around 100 major auto component manufacturers with an investment of USD 553.85 million, at present. The output is worth USD 1.2 billion with exports of USD 140 million directly employing about 45000 people. Over 350 tier I to tier III suppliers apart from 4000 SMEs under the tier IV segment are located in Chennai and some of the best auto components manufacturers such as Visteon, Delphi, and others manufacture more than 25 percent of their components in the city.
‘Detroit of India’
According to recent reports, Tamil Nadu claims that Chennai is the largest contributor to the automobile sector in the country. This is in terms of industrial output. Chennai the capital city of Tamil Nadu is also known as the Detroit of Asia and Detroit of India owing to the presence of major automobile manufacturing units in the city. Also, the four-wheeler vehicles in this city are the base of 30 percent of the country’s automobile industry and 35 percent of its automobile component industry. The city has an installed production capacity of manufacturing one car every 20 seconds, which is approximately 3 cars per minute, and one commercial vehicle every 90 seconds.
Apart from the commercial industry, the Heavy Vehicles Factory has been established in Avadi with an aim to manufacture military-related vehicles. Not just that, the Combat Vehicle Research & Development Establishment - a new engine test facility is also located in Avadi, Chennai.
Another place that is well-known for MSME industries is Ambattur. Located in the outskirts of Chennai is the Ambattur industrial estate that houses around 1000 MSME industries spread across 1200 acres. Furthermore, there are around 2500 tiny industries around the towns supporting these Medium and Small-Scale Industries.
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