The Hindu Business Line : UK woos Indian automotive cos

INDIAN automotive companies are now being wooed by the British Government's Inward Investment Group,which is in India with a delegation of auto companies looking to network with potential investors into the UK's $72-billion automotive sector.

On offer for investors, be it automobile or component makers, are a variety of benefits guaranteed to give business a major boost. For instance, says Ms Nicola Kidd, Head of International Investment East Midlands Development Agency, "The UK hosts the world's most productive car and commercial vehicle plants, Nissan and Leyland Trucks, respectively. It is also a world leader in automotive research and development, component manufacture and a high-level precision engineering."

The delegation, which was in Pune — an auto sector hub — held a seminar to showcase the UK as a place where both entrepreneurs and large companies could invest to fuel their growth plans. The UK is one of the leaders in the automotive research and development with an annual turnover of $2.4 billion. One attraction for potential investors could be the fact that it is a hub for product design/development; areas with huge potential, given the pace of growth in the automotive industry and the competition in the crowded space.

For India's automotive and allied industries, a plus in favour of investing in the UK is the entry that it could offer to Europe, one of the largest consumer markets in the world..

Over 7,000 component suppliers operate in the UK

In a sector where fast-to-market time scales are crucial, the UK can commit to same-day delivery times to France, Belgium, the Netherlands and most of Germany.

The British Deputy High Commissioner in Mumbai, Mr Ian Hughes, who delivered the keynote address at the seminar, pointed out that India is also shooting up the FDI league table into the UK and is now placed eighth. Some 500 Indian companies now have operations in the UK and the latest figures show that a large portion of them are now in expansion mode, he said.

"Companies from all over the world decide to invest in the UK because of the overall economic and business climate which has evolved due to a stable Government, a skilled and flexible workforce, and business-friendly policies developed in consultation with industry'', he said.

Mr Hughes took the opportunity to dispelled what he said was a widespread myth about the UK on the controversial issue of outsourcing.

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