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Automobile & Auto Components

The automobile sector in Karnataka has grown significantly, with output doubling in 4 years. Karnataka has three major auto clusters and is one of India's largest producers of automobiles. It accounts for 8.5% of India's automobile output. The sector employs over 55,000 workers. Karnataka aims to further develop the sector through initiatives like establishing an Automobile Research & Innovation Centre and reducing taxes for green vehicles. It hosts many major automobile and auto component companies due to its skilled workforce, domestic market, and strategic location providing access to ports.

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Puneeth Kumar
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58 views5 pages

Automobile & Auto Components

The automobile sector in Karnataka has grown significantly, with output doubling in 4 years. Karnataka has three major auto clusters and is one of India's largest producers of automobiles. It accounts for 8.5% of India's automobile output. The sector employs over 55,000 workers. Karnataka aims to further develop the sector through initiatives like establishing an Automobile Research & Innovation Centre and reducing taxes for green vehicles. It hosts many major automobile and auto component companies due to its skilled workforce, domestic market, and strategic location providing access to ports.

Uploaded by

Puneeth Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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AUTOMOBILE &

AUTO COMPONENTS
AUTOMOBILE & AUTO COMPONENTS

HIGHLIGHTS OF AUTOMOBILE
SECTOR IN KARNATAKA
Ÿ Karnataka’s Automobile sector output has doubled in 4 years, registering a 30% CAGR, 8% of the country’s
R&D expenditure.
Ÿ Karnataka has three auto clusters, one industrial valve cluster and two auto component clusters.

Ÿ Wide ecosystem including OEMs, component manufacturers and R&D Centers.

Ÿ Auto clusters located at Hoskote in Bengaluru Rural, Bidadi in Ramanagara and at Dharwad in Karnataka.
Industrial valve cluster at Hubballi – Dharwad belt and Auto components clusters in Shivamogga and Belagavi
districts.
Ÿ One of the largest state in automotive production with output of USD 3.1 bn, contributing 8.5% to national
automobile industry output.
Ÿ Investments of around USD 700 mn generating annual revenues of USD 600 mn.

Ÿ The automotive industry provides employment to more than 55,000 workers.


AUTOMOBILE & AUTO COMPONENTS

WHY AUTOMOBILE &


AUTO-COMPONENTS, KARNATAKA?
Ÿ Presence of robust domestic customer base with more than 14 million registered vehicles in the state.

Ÿ Proximity to the west (Maharashtra & Gujarat) and south (Tamil Nadu and Andhra Pradesh) auto clusters in
the country and to 6 ports via NH and SH.
Ÿ Many drivers for auto component industry to cater local, national and international markets. The leading
OEM,Tier I & II companies, form the entire value chain.

Presence of leading automotive players


Ÿ The leading OEM,Tier I & II companies are located
in Karnataka, forming the entire value chain
Mumbai
Ÿ Auto clusters are located at Hoskote in JNPT 550 km
Bengaluru Rural, Bidadi in Ramanagar and at
Dharwad
Ÿ Industrial valve cluster is located at Hubballi – 3

400 km
Dharwad
km Krishnapatnam
350 km 400
Ÿ Auto components clusters in Shivamogga and New Mangaluru 1 Ennore
25
Chennai
Belagavi 0k 2 350 km
m

Connectivity to both eastern and


Legend
western ports LEGEND
1 Bengaluru (Urban
Ÿ Connectivity to 6 ports via NH and SH to 1 Bengaluru
& Rural) (Urban
& Rural)
facilitate growing exports in the sector
Mysuru
22 Mysuru
Ÿ Planned Dedicated Freight Corridor between
3 3Dharwad
Dharwad &
& Belagavi
Belagavi
Chennai and Bengaluru will further improve Approximate distance between automobile
connectivity to Chennai and Ennore ports clusters in Karnataka and major ports nearby
Ÿ Inland Container Depot (ICD) is easily accessible
in Bengaluru Bengaluru has 2nd Karnataka has
highest number of connectivity to 4
Skilled Workforce cars among all cities out of top 5
in India with more automobile markets
Ÿ Highly skilled workforce available in the State than 4.1 million in the country.
owing to more that 1400 ITIs registered cars
Maharashtra, Tamil
Ÿ More than 400 R&D centres and 206 engineering Nadu, Gujarat &
colleges driving innovation across the State Andhra Pradesh
AUTOMOBILE & AUTO COMPONENTS

INVESTMENT OPPORTUNITIES
Passenger Vehicles, Two Wheelers Three Wheelers
passenger Cars, Utility Scooters, Mopeds and Passenger and Goods
Vehicles, Multi Purpose Motorcycle Carriers
Vehicles

Commercial Vehicles
Auto Components and R&D and Testing
Light, Medium and
Accessories facilities for Automobile
Heavy Commercial
Manufacturing Industry
Vehicles

The State is Keen To Develop


Ÿ Free Trade WareHousing Zone (FTWZ} through PPP mode
Ÿ Karnataka Automobile Research & innovation Centre on PPP mode

GOVERNMENT INITIATIVES
Initiatives for Automotive sector proposed in Karnataka Industry Policy 2014-2019
Ÿ To incentivize and institutionalize the R&D environment for auto sector in the State.
Ÿ Fostering and supporting linkages between industry and academia for research.
Ÿ Propose to commission the 'Karnataka Automobile Research & Innovation Centre' in Karnataka which
would also be an Incubation Centre. The Centre is proposed to be established on a PPP model with
State support.
Ÿ To set up an industry group to study and recommend measures for growth of the auto component
sector in the State.
Ÿ With a view to reduce air pollution and encourage manufacture of green Hybrid and Electric Vehicles it
is proposed to reduce road tax and registration tax, as indirect incentives.
Ÿ Automotive Sector industries declared as public utilities under Industrial Disputes Act 1947, during the
policy period.
AUTOMOBILE & AUTO COMPONENTS

AUTOMOBILE & AUTO COMPONENTS


COMPANIES MAKING IN KARNATAKA

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