Indian Autos blog

Tuesday, April 22, 2008

India's Detroit shaping up

From Mahindra to Mercedes, Chakan, which lies 30 km from the city of Pune, is rapidly developing into India's Detroit. Foreign auto manufacturers including the mighty Germans, want to put their money setting up their facilities in this place.

Whats happening in Chakan in a few years time. Mercedes, VW, Mahindra, Renault, GM and JCB will produce their vehicles, which will total to 1.8 million vehicles annually (Tip : That's more than what the country Britain churns out annually).

The VW plant, which commences production next year will produce 110,000 cars every year. Renault, which will partner Bajaj in making the low cost car, will produce the hot-selling type of cars later next year (Tata plans 2.5 lakh cars a year, Bajaj would be looking at similar numbers if things work out). Diamler Chrysler and Mahindra and Mahindra, have big plans of setting up high-capacity plants very soon.

There are a host of reasons why Chakan and its surrounding have attracted millions of dollars of investment. Chakan is well connected by rail, road and air. The six lane Mumbai-Pune motorway gives easy access to the port. Pune is loaded with engineering colleges, which means recruiting is easier and cheaper labor is readily available.