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Profile & Performance
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AUTOMOBILES
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Automobile industry is one of the largest industries in India. Its turnover in the year 2004-05 was 100 billion rupees.
West Bengal has traditionally been very strong in the engineering
industries and has been an important manufacturing base in the past. West Bengal’s Hindustan Motors was one of the pioneers by commencing production of vehicles in the state in the
year 1948. Recently it has collaborated with Mitsubishi Company of Japan to
diverse into a wide range of cars and manufactures everything related to
automobile industry like trekkers, trucks, and also luxury cars like Mitsubishi
Lancer and touching a consolidated net sale of US$ 233.47 million in the last
fiscal year.
Telcon a subsidiary of the Tatas has set up a Heavy Earth Moving Equipment
manufacturing unit in Kharagpur. Others like Ashok Leyland and Ural (Russia) have expressed their desire for setting up manufacturing units
in the State.
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AUTO COMPONENTS
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The size of the Indian component industry was US$ 7 billion in 2003-04 out of which US$ 1
billion was exported. A McKinsey study estimated that India would produce US$ 40 billion worth of auto component by 2014-15, up by almost US$ 30
billion from 2004-05. Both, Indian and West Bengal will have a competitive edge
in this sector because auto parts here costs around 25-30% less than North
America and Europe and 15% less than South Korea
and Mexico
while the quality is being at par.
West Bengal realizing this huge potential in this sector has geared up with appropriate plans and
policies to boost this sector. Also it has got certain inherent competitive
advantages since the state is located in the heart of India’s steel and manufacturing cluster. Hindustan Motors (HML) has announced plans to
invest Rs. 850 million to manufacture automotive forgings, stampings, and
castings. The company has got the nod from the West Bengal
government to modernize and develop its facility at Uttarpara. Auto component
SEZ has also obtained recent approval and is scheduled to come up in the
industrial belt of Kharagpur with private participation. Jetro, a division of
the ministry of economy, trade and industry of the Japanese government too has
expressed their interest to set up auto component manufacturing units in the
state.
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Policies & Plans
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A number of policy initiatives have been taken by the government to facilitate the
automotive industry. These include :
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Permitting 100% FDI in this sector & removal of minimum capital investment norm for fresh entrants.
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Establishing an international hub for manufacturing small, affordable passenger cars & a centre for manufacturing
two-wheelers.
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Conducting incessant modernization of the industry & facilitate indigenous design, research & development.
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Leveraging State’s software technology into automotive technology wherever relevant.
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Encouraging development of vehicles propelled by alternate energy sources.
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Development of domestic safety & environmental standards at par with the international standards.
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Emphasis on low emission fuel auto technologies & availability of appropriate auto fuels.
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The State is also encouraging dynamic investment in the sector to create an environment for volume production &
indigenous capability for small cars & auto parts.
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Potential
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Why West Bengal?
Advantages of West Bengal in this sector are:
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Nearness to critical raw materials such as iron and steel
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Traditionally strong in Engineering Industries and a history of automobile manufacturing and components.
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Two major international ports, Kolkata and Haldia.
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A good network of roadways.
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Improved telecommunication system.
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Large number of skilled and technical persons.
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A large domestic market and potential gateway to the Far East.
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Products & Services (Illustrative List)
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The potential investment areas in this sector for the investors are:
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Manufacturing of two and four wheelers
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Car Chasis
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Car engine manufacturing
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Car batteries
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Heavy vehicles like tracks and lorries
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Car radiators
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Auto ancillary unit
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Conventional Leaf Spring Unit
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Gears
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Bearings
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Filter
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Brakes
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Clutch
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Ignition
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Shock Absorber
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Steering and Transmission
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Auto Audio
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Auto Lamp
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Car Cooler
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Car Locks
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Cylinder
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Inner Tube
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Tyre
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