With 6 car projects namely Ford, Hyundai, BMW, Renault, Nissan and Mitsubishi-HM, Chennai is now emerging as one Top 10 Global Automobile manufacturing centers. By 2010-11, Chennai will have an installed capacity to produce 12,80,000 cars and about 3,50,000 commercial vehicles each year. This translates to 3 cars output every minute and one Commercial vehicle every 75 seconds. During 2008-09, Chennai produced 5.60 lakhs passenger cars accounting for 30.6% of India's production.
Since the mother plants operate on "Just-In-Time" principle, Government of Tamil Nadu has promoted Vendors' Parks along adjacent to the mother plants by Nissan, Daimler, Renault, etc., These Vendors' Parks a large number of ancillary projects notwithstanding the recession.
India enjoys a cost advantage with respect to casting and forging as manufacturing costs in India are 25 to 30% lower than USA and EU.
The exports of auto components industry reached around US$ 2.8 billion in 2006-07 and at a CAGR of 40 % between 2002-03 and 2006-07. Exports of auto components were growing at the rate of 35 % during 2002-07 and touched US$ 3.6 billion in 2007-08. It is estimated to reach around US$ 20 billion-US$ 22 billion by 2015-16. A majority of Indian exports are sent to Europe and North America.
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