Feb. 10: Chennai, the Detroit of India, is likely to see about Rs 8,000 crore more additional investments flowing into the sector following a slew of new automobile projects. The proposed units are likely to raise the city’s total auto output by 5 lakhs in a year.
Announcing the new projects taking shape in the state, Mr M.K. Stalin, deputy chief minister of Tamil Nadu, said, “Chennai, which currently makes 17 lakh cars SUVs and tractors per annum, will see its total production capacity go up to 22 lakh vehicles per year.”
He inaugurated a Rs 2100-crore facility of Apollo Tyres in Sriperumpudur on Thursday, which is the company’s ninth global manufacturing unit. “With this, the total installed capacity in tyre manufacturing in the Chennai region is set to exceed 1,600 tonnes per day,” Mr Stalin said.
Apart from this, the government is all set to sign an MoU with auto major Mahindra & Mahindra for an Rs 1,800-crore facility in Chennai to make one lakh and 50 thousand SUVs. The state is also in final talks with a global automobile major to set up a Rs 4,000-crore car plant with a capacity of 3 lakh cars.
Outside Chennai, a new tractor plant is being set up by Sundareshwarar Alloy and Steels at Nilakkottai and a Rs 1,000-crore tractor component manufacturing plant is also likely to come up at Gangaikondan
The Union government, on its part, is also setting up a Rs 500-crore automobile testing facility called NATRIP in Chennai, spread over an area of 304 acres. “This R&D facility is expected, to become operational in September 2011,” Mr Stalin said.