From the Hindu BusinessLine
Post-Independence, Tamil Nadu was quick to accelerate the pace of industrialization and create a unique place for itself in manufacturing.
While the State has a manufacturing legacy across sectors such as agro-processing, leather, and textiles, it has carved a niche for itself in the production of automobiles and components. It contributes over one-fourth of the export of auto parts and 70 percent of passenger vehicles. In 2017-18, more than a million passenger vehicles were produced in factories near Chennai for the domestic and export markets.
Tamil Nadu houses the manufacturing units of global passenger vehicle makers such as Hyundai, Renault-Nissan, Ford and BMW; truck makers like Ashok Leyland and Daimler; and two-wheeler makers such as TVS Motors, Royal Enfield, and Yamaha.
For Hyundai and Nissan, Chennai is the export hub. Recently, Daimler India Commercial Vehicle also made its Oragadam truck manufacturing facility the export hub to address markets in Asia and Africa.
Tamil Nadu was able to script a success story in auto manufacturing mainly due to a vibrant and competent supply chain. The auto-ancillary industry in the State is truly international, winning a number of global awards and recognition for production quality. The State hosts the highest number of Deming Award (a global recognition for quality) winners. Some of the leading auto parts groups from the State include TVS, Amalgamations, and Rane, which components to several global brands.
The State is said to account for about a third of auto components production in the country. Chennai alone has over 300 tier I-III suppliers besides a few thousand small/medium units in the sector.
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