Chennai Or Chakan - India's Detroit Shaping Up!

The Indian automobile sector may be witnessing ain the region. These companies get easy access to
slow down since the past few months but theNhava Sheva (JNPT Port) for exporting their cars
overall growth of the industry cannot be denied.from India.
Various major auto giants from all around the worldSimilarly, in the southern part of India, yet another
are flocking down to the booming Indian auto marketarea around Chennai is shaping up as the auto
with huge investments to lure the Indian customersmakers favourite destination. India's second largest
and occupy a greater market share in thecar manufacturer, Hyundai Motors India Limited,
sub-continent.already marks its presence in the region with its
Chakan near Pune is coming out to be the majormanufacturing plant at Irungattukottai, 30 kms away
autobahn in India and so is Chennai, down south. Punefrom Chennai. Its second plant is also located
has witnessed several changes as major industriesadjacent to its first plant. It uses Chennai port to
set their foot slowly in and around the city. First, itcater to its exports demand for its small cars from
was called as Pensioner's Paradise, and then it sawaround the world.
engineering industries setting their foothold. NextThe scenario near Chennai -Sriperumbudur belt is also
came the IT industry followed by the educationgaining pace rapidly. The fast and furious pace would
institutes. Now, the Talegaon-Chakan-Ranjangaon beltsoon churn out nearly 1.28 million cars from the
near Pune is shaping up as the next destination forfactories around the city in next two years. Ford is
major auto makers. Thirty years after Tata Motorsyet another big daddy after Hyundai Motors in the
and Bajaj had set their foot in Chakan, this area nowregion. Renault-Nissan has also set up its
witnesses nearly every major auto player in its arenamanufacturing facility at Oragodam (30 km SW from
- Volkswagen, General Motors, DaimlerChrysler, Fiat,Chennai). Next to make its debut in Oragadam is
Mahindra and Mahindra, and various auto componentGlobal Automotive Research Centre which would be
makers from the auto industry.worth Rs. 470 crore and would meet the world class
Maharashtra government has really put serioustesting requirements of auto companies.
efforts in promoting the whole Chakan belt for theAuto component majors also line up in the region
auto industry. Pune-Mumbai express highway haswith UK-based Caparo Group and Apollo Tyres trying
proven to be the important missing link that wasto gain foothold. MRF Tyres, Sundaram Clayton,
preventing its growth. The express highway hasSundaram Fasteners already mark their presence in
offered the best connectivity to the region with theChennai.
Mumbai port as well as with the rest of the nation.It remains to be seen how these regions turn the
After the changing economic and auto scenarios inface of quiet and conservative cities like Pune and
China and India, auto makers have taken IndiaChennai.
seriously as their next major destination. Hyundai andFinally, of course, Tata's foray into Gujarat with the
Maruti have already made India as theirNano plant is bound to set into effect a revolution
manufacturing and exports hub for their small carthere too. One can imagine the network effects that
facilities. Although, neither of the companies arethe production will bring with it. Could that be the real
present in Maharashtra, other small car manufacturersnext Detroit?
like VW, GM, Bajaj Renault are spreading their wings