West India gives glimpses of future automotive industry
Western India, dominated by Maharashtra and Gujarat, is the industrial phase of India. The automotive industry has its oldest, strongest and largest operational base in the region with almost all the Global OEMs, Tier I and Tier II suppliers. These companies have always been the harbingers of the change in the automotive sector in the country. Keeping pace with the global technological innovations and in tune with the megatrends in all areas, the Western India gives glimpses of future automotive industry in India.
Western India consists of the States of Goa, Gujarat and Maharashtra along with the Union Territory of Daman and Diu and Dadra and Nagar Haveli. The region, led by Maharashtra and Gujarat, is highly industrialised, with a large urban population.
Maharashtra is the second largest state in India both in terms of population and geographical area. The State has 4 biggest cities in the country Mumbai, Pune, Nagpur and Nashik and the 2 biggest ports.
Mumbai, the capital of Maharashtra and the financial capital of India, houses the headquarters of almost all major financial institutions, insurance companies and mutual funds. The technical education institutions supply resources to match the industrial clusters in the State, including automobile design and manufacturing, e-supply chain management, insurance services, among others. The state has a much better infrastructure than in other parts of India.
The Automotive Policy of 2002, which had provided for automatic approval for foreign equity investment up to 100% and rebates on the R&D expenditure spent by the companies and the Automotive Mission Plan (AMP) 2006-16 promoted large number of SMEs and Tier I and II suppliers to the major companies like Skoda, Bridgestone, Volkswagen, Audi, Piaggio, Fiat, Mercedes Benz, General Motors, Foton, Goodyear, Bosch, Force Motors, Mahindra and Mahindra, Bajaj and Tata Motors.
Gujarat also is an industrially developed State and has many automotive clusters. Major players like General Motors and Tata Motors, Ford Motor Co, Suzuki Motor Corporation and Honda Motorcycle and Scooter India, are already in Gujarat. The State has automotive clusters in places like Ahmedabad, Sanand and Bhuj with a host of component manufacturers and suppliers. By 2020 automotive companies in Gujarat are expected to produce 15 lakh units. The overall investment in the State to be made by suppliers is estimated to touch Rs 10,000-15,000 crore over the coming decade.
In our Cover Story we have reports about some of the new and leading players in the auto component sector, mainly the Tier I and Tier II suppliers, in Western India, including an exclusive interview with Stefano Pelle, Managing Director and CEO, Piaggio Vehicles Private Limited