Govt to set up two automotive manufacturing hubs

Government plans to set up two automotive manufacturing hubs spread over 10,000 acres each in central and eastern India. The new hubs, aimed at consolidating India’s position as an important destination for low cost automotive production, will be in addition to the three existing zones—Haryana, Maharashtra and Tamil Nadu. India’s automotive industry, estimated to have a turnover of $73 billion at present, accounts for 6 per cent of its GDP. “There is need to make India cost competitive and a large scale manufacturing destination that would help it emerge as a front runner for low cost production globally,” Praful Patel, Minister for Heavy Industries and Public Enterprises, told top officials of automobile and auto component companies in Delhi.
Auto sector to see Rs 2500 bn investment: The Indian automobile industry is expected to invest about Rs 2500 billion (Rs 2,50,000 crore) in the next 10 years, and the production of four wheelers in the country is expected to grow to 10 million units annually by 2020 from 2.5 million units currently, “This will create 20 million jobs by 2020. We are keen to see orderly growth and sustainable growth,” said the minister.