Automobile sector in developing gujarat

Emerging Automobile sectors in gujarat

1. Entry of Auto Majors in Gujarat: Opportunities By Manish Manghnani

2. Introduction 2001 – Mr. Narendra Modi in power Era of change and development Gujarat becoming an automobile hub Friendly investment policies and other factors 2

3. GUJARAT: An emerging Auto-Hub. 3

4. 4

5. Reasons for preferring Gujarat Abnormal Concession Tax Benefit Doled out concessions Business environment Better labor-industry relations Infrastructure   5

6.  Port connectivity Readily available land  Availability of power  Pro-industry government 6

7. Opportunity Pro-business environment Excellent infrastructure Facilitation of land acquisition Well developed ports (Mundra ,Kandla) The availability of skilled workforce Stronger political environment Electricity Location between Delhi and Mumbai 7

8. Players 8

9. TATA Nano 2008, plant shifted 725 acres Generates over 20,000 direct and indirect jobs Friendly approach of the farmers 9

10. Hyundai Diesel engine manufacturing plant Invest 4,000 crore Officials visited site at Dholera 10

11. Maruti Suzuki Maruti Suzuki India is in talks with the Gujarat government. Maruti along with vendors, could invest up to Rs 18,000 crore , producing 20 lakh units . Maruti Suzuki India (MSI) said the new 700-acre plant near Mehsana will be set up in a phased manner with an initial investment of Rs 4,000 crore by 2015-16. The plant in Gujarat will generate direct employment for over 2,000 people. 11

12. Ford Applied for 500 acres of land Neighbor of TATA Motors in Sanand Ford’s second plant in India 12

13. Why Ford selected Gujarat location as it offers ports for possible exports to western markets. Cost and logistics considerations, business environment and the State Government's “transparent and competitive” offers . “We took a lot of time and saw activity to zero in on Gujarat .” ( By Mr Michael Boneham , President and Managing Director, Ford India ) 13

14. PSA Peugeot C itroen PSA PEUGEOT CITROEN returned to India Peugeot’s Sanand plant which will be 17th globally It plans to invest nearly Rs 4,000 crore in the facility and hopes to start production by 2014 It will provide direct employment to 5,000 people and indirect employment to another 25,000 persons Construction work near Sanand is scheduled to begin this year end and the project will be commissioned by 2014 14

15. Growth in Rajkot Rajkot is a hub for the auto parts ancillary units 70 per cent share in the Indian auto parts industry Registered a 15-20 per cent growth annually 500 manufacturers of auto components Total turnover is INR 1500 crore 15

16. Sanand Sets opportunity for Gujarat to be an auto hub 2008: Tata Nano plant July 28: Ford India announced its second Indian facility on 480 acres at Sanand . September two: Peugeot, too, announced its re-entry into India via Sanand , from 584 acres of land.   They are investing Rs 4,000 crore each 16

17. Opportunities due to Sanand Sanand is a part of special investment region, which permits firms investing there to avail various fiscal and non-fiscal benefits, reducing project costs, including time for completing the project cycle. New jobs in automobile hub sector. Economic and employment opportunities. Avail of various tax incentives. Easy availability of land 17

18. Benefit to Indian Economy Mother industry for every direct job in the OE & minimum 5-7 indirect jobs are created. Importance of transport equipment. Providing job opportunities for the design, hardware and software engineers. Help India to develop a niche position globally and diversify its export basket. Healthy competition among auto hubs. It would assist India in progressing towards the goal of increasing the share of manufacturing in GDP from 16% in 2010 to 25% by 2022. 18

19. Thank you By Manish Manghnani