The automotive sector is one of the core industries of the Indian economy, whose prospect is reflective of the economic resilience of the country. With 4% contribution to the GDP and nearly 5% of the total industrial output, the automotive sector has become a significant contributor to the exchequer.

One of the largest industries in India, automotive industry has been witnessing impressive growth during the last two decades. Abolition of licensing in 1991, permitting automatic approval and successive liberalization of the sector over the years have led to overall development of the automobile industry. The freeing of the industry from restrictive environment, on the one hand, helped it to restructure, absorb new technologies, align itself to global developments and realize its potential and on the other hand, this has significantly increased industry's contribution to overall industrial growth in the country. The automobile industry witnessed a growth of 19.35 percent in April- July 2006 when compared to April- July 2005

Orissa holds huge potential in the automobile sector including the automobile component sector owing to its raw material, cost and manpower advantage. Orissa has following resources / infrastructures to support Automobile manufacturing Units:

Material resource:

•  Good quality pig iron / steel ingot

•  Good quality pure aluminum ingot

•  Steel flat products (plates, sheets HR / CR)

•  Steel rounds.

•  1.5 million state-of-the-art automobile tyre manufacturing unit

Infrastructure resource:

• Central Tool Room Training Center (development of press tools, forging tools, dies & moulds, precision in nature). In addition training of highly skilled tool room personnel / technicians

• Central Institute for Plastic Engineering & Technology (development of moulds for engineering plastics). In addition, training of highly skilled personnel / technicians for industries manufacturing engineering plastic goods

• Indian Institute for Foreman Training (training facility for Foremen to manage engineering industries (for mass production / unit production / assembly line)

• Adequate power availability in the State, to take care of power intensive industrial activities like melting, pre-heating, heat treatment etc

• The state produces more that 10,000 engg graduates, 5,000 diploma engineers every year, covering more than 25 branches of engineering discipline

Investment Opportunities

• Passenger Car Segment
• Two Wheeler Segment
• Heavy truck Segment
  
  

  Components

  Spurred by the buoyancy in the auto sector, investment in the ancillary sector is rising rapidly. The size of the auto component industry has grown from US $ 2.4 billion in 1997 to US $ 8.7 billion in 2004-05. Among the companies outsourcing from India are General Motors, Ford, Daimler Chrysler, Hyundai, Fiat, Toyota, Delphi, Navistar, Honda, Cummins and Caterpillar.

  Orissa has following resources / infrastructures to support Automobile component manufacturing Units:

  Material resource:

  •  Good quality pig iron / steel ingot

  •  Good quality pure aluminum ingot

  •  Steel flat products (plates, sheets HR / CR)

  •  Steel rounds

  Infrastructure resource:

  •  Central Tool Room Training Center (development of press tools, forging tools, dies & moulds, precision in nature). In addition training of highly skilled tool room personnel / technicians

  •  Central Institute for Plastic Engineering & Technology (development of moulds for engineering plastics). In addition, training of highly skilled personnel / technicians for industries manufacturing engineering plastic goods

  •  Indian Institute for Foreman Training (training facility for Foremen to manage engineering industries (for mass production / unit production / assembly line)

  •  Adequate power availability in the State, to take care of power intensive industrial activities like melting, pre-heating, heat treatment etc

  •  The state has a few large industrial units like Rourkela Steel Plant, NALCO, L & T, Sterlite (aluminum), in addition to a cluster of sponge iron plants, steel plants, with their captive power pants

  •  There is ample scope to make alloy steels of manganese, chromium, silicon base, these materials being manufactured inside the state

  •  Many automobile component manufacturing units would require nearness to a “Mother unit”, with whom they can have OEM tie-up. Keeping in mind the “small car” project of TATAs in West Bengal, Orissa offers its best of infrastructure for setting up such units in the districts of Balasore, Bhadrak, Jajpur, Cuttack and Dhenkanal

  •  The state produces more that 10,000 engg graduates, 5,000 diploma engineers every year, covering more than 25 branches of engineering discipline. It is still diversifying to the fields like marine engg, harbour engg, railway engg, nautical science & instrumentation etc

  Keeping these in view RSB Transmission has signed MoU for setting up an automobile complex at Choudwar at an estimated cost of Rs. 365 crores.