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| Auto majors flock to state with projects |
| BS Reporter / Chennai/ Bangalore Jun 05, 2010, 00:13 IST |
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Karnataka, which plays host to automobile and machine tool majors like the Toyota Kirloskar Motor and Bosch, has received a boost in the Global Investors’ Meet (GIM) in Bangalore. Companies have evinced interest in expanding their operations in the state.
The Bosch group has expressed interest in setting up a plant to manufacture auto components in Bidadi over an area of 100 acres. The company is looking at an investment of Rs 550 crore in the plant. It is yet to take a call on the manufacturing capacity of the plant, or when it will start operations.
General Motors India is set to increase headcount at its Bangalore R&D centre from 1,600 to 2,000 employees by the end of the year. The company said it will develop its small electric car for India by leveraging a combination of its global technology and local knowledge of the centre.
“We are not setting a time limit for coming out with our small electric car. But we will pursue our own programme and use both our global and local knowledge for it,” said Karl Slym, president and managing director, GM India. The company plans to hire PhDs, engineering graduates and technical staff for the centre.
GM plans to launch Volt, a battery-operated car in the US in the fourth quarter of the calendar year. “We are yet to decide on the market for electric vehicles in India,” said Slym. The company said there are no immediate plans to bring the Volt into India. There has been speculation recently that the company is working on a rival to Tata Nano. Slym said the company was looking at cars in various segments. “We are not necessarily focused on the price of a car and will look at what value the car offers,” said Slym.
Toyota Kirloskar Motor, which is setting up a second plant at Bidadi for an investment of Rs 3,200 crore said that phase one would have a production capacity of 70,000 units a year. The company said it will extend capacity to 200,000 units a year in the second phase. It is planning to launch its small car Etios by the year-end. It is also evaluating the possibility of exporting the car. The company’s dealer network will increase from 74 to 150 by the end of 2010.
European machine tool maker MAG said, it is planning to set up a technical centre in Bangalore. “We are in the first stage of investigating the size of the centre,” said Markus Grob, president, MAG Europe. The company is evaluating the possibility of setting up a production unit in the state in the next few years. Volvo Buses too said, it would look at further investment opportunities in the state. R Ashok, transport minister for Karnataka, said, to encourage auto and machine tool companies to invest in the state, auto SEZs in places like Shimoga and Bidadi were being set up.
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