Day 82 – Q 4.What are the major hubs of automobile manufacturing in India. Do you witness a shift in the way automobile industry is distributed across the country? Comment.
4. What are the major hubs of automobile manufacturing in India. Do you witness a shift in the way automobile industry is distributed across the country? Comment.
भारत में ऑटोमोबाइल विनिर्माण के प्रमुख केंद्र क्या हैं। क्या आप देश भर में ऑटोमोबाइल उद्योग के वितरण के तरीके में बदलाव देख पा रहे हैं? टिप्पणी करें।
India is the 4th largest automobile market in the world and has the 5th largest automobile industry. Owing to the market size, the investments in various segments of the industry is increasing spreading the automobile industrial clusters across the country.
Major Hubs of automobile industries:
- Chennai- Bengaluru-Hosur in the south
- Jamshedpur-Kolkata in the east
- Delhi-Gurgaon-Faridabad in the north
- Mumbai-Pune-Nashik-Aurangabad in the west
The above hubs are on account of
- raw material availability E.g. the presence of Iron and steel industry in and around Jamshedpur and west Bengal region
- Market availability E.g. Chennai – Bangalore has one of the highest 2 wheelers on road in the world.
- Skilled labour – in the region of Mumbai, and migrants from north India providing cheap labour and so on.
- Export availability and distance for transport for imports E.g. Mumbai, Kolkata closer to ports; Other places with road and rail connectivity.
Shift in location of Automobile industries:
There is a shift in pattern of automobile industries in addition to earlier industrial hubs
Tier 2 cities: owing to the scarcity and expense on land, 2nd tier cities are being preferred to setup automobile industries. E.g. Kolar district of Karnataka, Sanand Gujarat and so on.
Southern Indian region is witnessing in surge of automobile production units owing to the increase in vehicular use. The industrial regions of chittor-Ananthpur in Andhra Pradesh, Chakan near pune in Maharastra etc.,
With state government investor summits being held, Make in India initiatives, the industries are being planned in new states. E.g. Industrial region announced in Ranchi.
With increasing connectivity, market distribution- the industries are also being away from coastal regions to hinterland E.g. Pithampur and Indur in MP, Expansion around NCT Delhi.
Instead of standalone Automobile industrial regions as in the past, automobile industrial corridors are being set up with original equipment manufacturers with value chain development in surrounding areas. E.g. Chennai- salem – along with Oragadam in Tamilnadu, Sarjapur industrial cluster in Bangalore etc.,
Thus, Automobile industry is being spread across the country and with promising market has the potential of high growth rate. With electric vehicles being promoted, the distribution of the industry in future also depends on its consumption and infrastructure availability includin power majorly and feasibility of industrial plants. Thus, there is a need to incentivize and ease the setting of Automobile industries through land reforms, tax benefits and so on.