The story
Chennai's auto industry began with Ashok Leyland, TVS and Standard Motors after Independence, backed by a strong base of engineering colleges and the Chennai port. From the mid-1990s global carmakers set up large plants along the Sriperumbudur–Oragadam and Maraimalai Nagar corridors, followed by hundreds of suppliers. The port made Chennai India's main car-export hub. The belt is now adding EV and battery plants.
In numbers
Tamil Nadu accounts for about 35% of India's auto-component production, about 36% of two-wheelers and 25% of four-wheelers made in India, and about 40% of tyre production (state investment agency).
Automobile, Auto Components & EV — Guidance Tamil Nadu (Investing in Tamil Nadu)Citing SIAM, Tamil Nadu had about 20% of India's installed vehicle production capacity and 21% of India's automobile exports (2015).
Chennai aka Detroit of India — The Auto Channel (citing SIAM) · 2015
Ways in for a newcomer
- Tier-2/Tier-3 supply: machined parts, sheet metal, rubber and plastic parts
- Tooling, dies, fixtures and jigs
- EV components, wiring harnesses and battery-pack assembly
- Logistics, warehousing and vehicle-export services near the port
Problems the cluster faces
- Tough quality and cost demands from OEMs
- Shift to EVs makes some engine parts obsolete
- Land cost and long commutes in the corridor
- Payment delays down the supply chain
Businesses to start here
Automobile Gear Manufacturing →Automobile Piston Manufacturing →Automobile Control Cables →Automotive Air Filter Manufacturing →Brake Shoe Manufacturing →Auto Clutch Plate Assembly →Automobile Alternators →Rubber-Bonded Engine Mounting Unit →