Chennai, Mar 6 () : Japanese auto majors’ favourite investment destination is Tamil Nadu. The Southern State has outperformed the rest of the country in the automotive sector.
This was stated by Rane Group Chairman L Ganesh at a seminar held here on Tamil Nadu as investment location for automotive industry. Ganesh is past President Southern region, CII. Confederation of Indian Industry (CII) in association with Japan External Trade Organisation (JETRO) conducted the seminar here on Tuesday.
Reasons for automotive industry to prefer Tamil Nadu is pro-industry ecosystem, supported by State Government’s investor-friendly policies and thousands of high quality engineering graduates from reputed colleges make it easy to attract global investment in the automotive sector, said Ganesh. He pointed out that in India there are 1804 Japanese companies, out of which 344 firms are in Tamil Nadu and 60 per cent of Japanese investment is in the Southern State.
The large working middle class and a vibrant youth population are the reasons for automotive sector to grow in Tamil Nadu due to which it is growing at a fast pace putting behind other States said Pooja Kulkarni, IAS, Joint Secretary to Tamil Nadu Industries Department.
Tamil Nadu ‘s huge ports and three in Chennai have attracted Japanese investors. In the coming years, India’s domestic market will be the third largest market for vehicles, felt Executive Vice Chairman, Guidance Bureau, Government of Tamil Nadu. He said that Tamil Nadu and Japan always enjoyed special relationship.
JETRO Executive Vice President, Soichi Yoshimura, said, IT and IT-enabled services, infrastructure, trading, electronics, engineering and machinery, electronics and logistics attracted large number of Japanese companies.
The location of Chennai and Tamil Nadu is geographically ideal for export to various continents. With the opening of outer port in VOC harbour and expansion of Ennore to handle cars, the automobile sector would grow. The expressway from the auto hub to Ennore and the industrial corridor built with Japanese help would only boost the auto sector in coming days, said speakers at the seminar.