Khed City – Most Preferred Destination for Auto Ancillary Units

By 15/12/2018 Blog
Khed City - Industrial Park in Maharashtra

The rise of automobile manufacturing units and component suppliers that populate the landscape of outer Pune, particularly Pimpri-Chinchwad, Chakan and Talegaon areas have increasingly earned the label of being the ‘Detroit of India’ and it continues to draw interest and attract investments.

Today, the Pune automobile landscape includes the ‘who’s who’ of Indian and increasingly international automobile majors. Tata Motors being the largest, followed by Bajaj Auto, Force Motors, Mahindra Two-Wheelers, Mercedes-Benz, GM, JCB construction equipment, Volkswagen, M&M, Premier Motors and Fiat.

The entry of the heavyweights of Indian automobile industry ‘ Tata Motors and Bajaj Auto’ in the 1960s resulted in and subsequently escalated the mushrooming of allied industries that catered to the outsourcing requirements of these principals. However, in this millennium, global heavyweights like General Motors, Fiat, and Volkswagen and more recently India’s largest utility vehicle maker Mahindra & Mahindra (M&M) have committed large investments in Chakan region and their entry opened the floodgates for auto investments in Chakan and surrounding areas.

Khed City, “ Perfect Eco System for Auto Ancillary Units

Lately, Khed City witnessed investment coming from the auto ancillary units from across the globe. World’s largest aluminum wheel manufacturing company Maxion wheels from Brazil opted for Khed City for its alloy wheel plant. Vendors to Mahindra and Mahindra, like Gedia Automotive from Germany and Autogen from S. Korea & Onkar Dies from India, also purchased land in Khed City. Gedia Automotive from Germany is a vendor to Volkswagen. They opted for a 15 acre of land in Khed City. Other major auto ancillary units from India like Sandhar Technologies, Alicon Castalloy also selected Khed City as their manufacturing base.

Proximity to established auto clusters like Chakan, Talegaon, and Ranjangaon, gives Khed City an edge over other industrial zones in Maharashtra. Khed City is within 15Km to 40Km radius of all major automobile manufacturer s. Most of them prefer JustInTime delivery framework, that demands suppliers to be in the vicinity of their manufacturing plants.

Availability of skilled workforce, fiscal benefits from State Government and Central Government; wide roads for container movement, availability of quality electricity, hassle-free and transparent land allotment process are amongst several takeaways for the industrialists.

MIDC being a joint partner along with Kalyani Group, Khed City brings in trust and commitment of Kalyani Group and support of Government to budding industrialists. Hand holding in every step, from land selection to operations, Khed City team value adds in the right directions making it truly single window assistance.

Booming Opportunities in the Auto-Component Sector

The Indian Auto component manufacturers have experienced a healthy business growth in terms of exports and contribute to 7.1 percent of the country’s GDP.

The industry is expected to record a turnover of US$ 300 billion by 2026, reports Automotive Component Manufacturers Association of India (ACMA), positioning India as the fourth largest global manufacturer after China, the US, and Japan.

The Foreign Direct Investment (FDI) influx into the Indian automobile industry in the last 17 years was recorded at US$ 18.41 billion, as per the report released by the Department of Industrial Policy and Promotion (DIPP).

One of the prime reasons for the business to flourish is the growing presence of worldwide automobile Original Equipment Manufacturers (OEMs) in the Indian landscape. This has significantly led to the localization of their components in the country. Other reasons for the growth are an optimistic end-user market, government initiatives like the Automotive Mission Plan 2026 and an enhanced consumer sentiment.

The Near Future

Even with the advent of electric and hybrid cars in the near future, it will lead to the creation of newer opportunities and verticals for the auto component manufacturers through extensive R&D. The Indian auto-component makers have an export potential that could amplify up to US$ 40 billion by 2020.

Khed City is one of the thriving industrial parks in Maharashtra that aims to strengthen the national manufacturing capabilities with a spirit of innovation and an optimistic verve. Are you ready to scale up your potential with Khed City?