The automobile sector in Andhra Pradesh has a potential for $ 1 billion investment and $ 1.50 billion output, according to a recent analysis by Automotive Components Manufacturers’ Association of India (ACMA) and city-based Andhra Chamber of Commerce and Industry Federation (ACCIF).
However, the potential can be harnessed only when the government individually reaches out to Original Equipment Manufacturers (OEMs) some of which evinced interest in making investments in the State, the industry bodies stated in their ‘Inputs for Industrial Policy 2014-19’.
“A.P has scope to become the next big destination for automobile companies after the National Capital Region (Delhi), Pune and Chennai which reached saturation,” the ACMA said in a presentation given to members of ACCIF recently.
The presence of OEMs is crucial for potential auto hubs, including Vijayawada which has hundreds of small and medium automobile spare and servicing units but they are woefully lacking the presence of OEMs.
In a meeting held in the city recently, ACCIF office-bearers and ACMA southern region secretary U. Anil Kumar had detailed discussions on the industrial policy imperatives and what could be done to give a fillip to the auto sector in and around Vijayawada.
Mr. Kumar has said with the OEMs being export-oriented the Machilipatnam port has to be developed while the feasibility of alternate ports is examined with emphasis on containerisation. Logistics apart, it was suggested that skills of auto sector workers should be developed under the guidance of Automotive Skills Development Corporation formed under the National Skills Development Corporation of India.
Opportunities that come with the development of ‘peninsular industrial corridor’ comprising Vijayawada, Chennai, Bangalore and Mumbai are sought to be tapped. Basically, availability of land should not be obstructing growth and there should be a venture fund with a corpus of Rs 500 crore to promote the sector, the ACMA recommended.
