South India to become prime location for auto components manufacturing

South India has been declared a hub for the auto parts in India by a group of panelists in a seminar yesterday. It is growing at the pace of the Japanese auto firms and is aiming at low cost centres for manufacturing components.

The seminar on the Procurement of Auto Components from South India and also a business meet with the group of Japanese firms, organized by the Confederation of India Industry ( CII )), Japan External Trade Organisation (Jetro) and Automotive Components Manufacturers Association (ACMA).

Shinya Fuji, Director General of Jetro in Chennai, attended the conference. She stated that according to a recent survey almost 86 per cent of the Japanese auto firms are speculated to be expanding its operation in India. In that, 83.5 per cent are assumed to increase the local production which will greatly support the Indian industries.

Gayathri Sriram, Managing Director of Ucal Auto said that purchasing the auto mobile parts from the low cost countries presently revolves around $65 billion, which is expected to jump to $375 billion by 2015. She also mentioned that the three groups   Amalgamations, Rane and TVS headquartered in Chennai register for over 20 per cent of the country's auto parts manufacturing.

The international market for the vehicles and auto mobile parts is likely to be driven by the emerging auto markets for the next decade. Harish Lakshman ACMA's Southern Region Chairman stated that auto mobile manufacturing is speculated to increase three folds from 2009 to 2020.

Lakshman said that the expansion in the capacity by many auto mobile producers across the globe, forecast an investment of $22 billion component firms. He also said that the particular industry can expand to $110 billion by 2020 which presently holds the size of $26 billion. It is assumed that the exports will accelerate to $3.8 billion to $26 billion then.

Tata Motor's wonder car Tata Nano ended in 37 patents filed by the auto part makers which is showcasing the capabilities of the Indian auto part makers.

He also stated that auto mobile part manufacturers go through various quality certification and eight Deming Medal winning firms are situated in Tamil Nadu.

As per R.Mahadevan, Group Technology Director of India Pistons, the Bangalore- Hosur- Chennai territory has almost 250 out of 728 auto part makers in the country who contributed to almost 35 per cent of the total auto parts manufacturing.

Volvo, Ford Motors, Toyota Motors, BMW, Hyundai and various other firms have their production unit, Mr Mahadevan further added that the auto part suppliers in the belt are already exposed to the global practices and various norms such as warranties, product liability and others.

Read More on : Audi A8 price in India