So why has Chennai emerged as the Detroit of South Asia? There are many reasons, not the least of which is the Tamil Nadu government's investment-friendly industrial policy.
With an impressive growth of 26.42 per cent last year, India is the second fastest growing auto market in the world, next only to China that grew at a scorching 42 per cent.
There is a lot to cheer about for India if you look at what the Confederation of Indian Industry survey of auto ancillary companies (Q2FY2010) says: 'India is estimated to have the potential to become one of the top five auto component manufacturing economies by 2025.'
'The Indian auto component industry is moving rapidly towards grabbing the global auto component outsourcing market, which is expected to be worth $700 billion by 2015. With the spiralling demand from the domestic and international auto companies, the industry is emerging as one of the fastest growing manufacturing sectors in India and globally,' the survey notes.
The Society of Indian Automobile Manufacturers' statistics show that auto exports from India rose by 49.59 per cent last year. The CII survey also says that India's exports of auto components would grow to $4.5 billion this year, compared with $1.8 billion in 2005.
