Sanand to emerge as auto hub of India

Published On Sep 05, 2011 02:21 PM By Meenal for Tata Nano

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The states like Tamilnadu, Maharashtra and Haryana are presently contending for the title of the ‘global auto hub’ in India. Another state Gujarat is likely to join the bandwagon with the auto makers’ increasing interest in making investments in the state. The major auto manufacturers like French brand Peugeot Citroen, American brand Ford and the Indian brand Tata Motors are all currently signing up for their possible manufacturing plants in the auto investor friendly state Sanand of Gujarat.

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Mr Anirudh Bhuwalka, MD and CEO of Asia Motor works, a commercial vehicle manufacturer, said that they opted to invest Rs 1,400 crore in Gujarat over Chennai and Pune in 2006. According to him, Gujarat had made interesting offers to attract the investors, the incentives being the most important factor that attracts an automobile manufacturer to make an investment to reap the benefits in any project. Mr. Vishnu Mathur of SIAM (Society of Indian Automobile Manufacturers) had also agreed that the incentives definitely play a major role with the investors, as except for the Central taxes, the land and the local taxes come under the state jurisdiction.

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Apparently, the new entrant in the auto market, Peugeot is being offered a liberal loan of Rs 4,000 crores that has to be paid in the duration of 15 years. According to a senior government official, a loan with similar terms was forwarded three years ago, in case of Tata Nano production as well. The loan extended to Ford India is however, said to be slightly different, that had announced its interest in setting up a facility in July, whose proposal regarding the interest model was also accepted by the Gujarat Government. Gujarat, which until five years ago, had few of the auto brands showing interest in making their investment like, General Motors, AMW and Apollo Tyres, now have more auto biggies’ intending to make investments.