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“We can invest in India if Narendra Modi is here,” said Kenichi Ayukawa, Managing Director, Maruti Suzuki at a pre-budget CEO meeting with the Prime Minister.
Modi and cabinet minister Piyush Goyal hosted the meeting with heads of companies from banking, steel, infrastructure, automobiles, telecom, consumer goods, textiles, renewables, hospitality, technology, healthcare, space and electronics.
“Most foreign investors around the world like to invest in India because they have confidence in the policy established by Mr. Modi. If Modi is here, we can invest,” Ayukawa said.
TV Narendran, MD and CEO, Tata Steel; Sanjiv Puri, Chairman and MD, ITC; Uday Kotak, CEO, Kotak Mahindra; Preetha Reddy, Vice-Chairperson, Apollo Hospitals; and Mallika Srinivasan, Chairman and MD, TAFE were among the senior executives who met Modi.
“Prime Minister Narendra Modi has a grand vision and ambitions for India. The automotive industry is fully committed to contributing to his grand vision by making India the manufacturing hub for the world, by increasing exports and localisation. In addition to his grand vision, the PLI scheme and other such policies will help develop and grow the industry,” Ayukawa added.
Maruti Suzuki, the country’s largest carmaker, has cleared the decks to set up a new plant in Haryana, which will be a first in over 15 years. The Delhi-based company has set aside an investment of Rs 2,200 crore this financial year, which is part of the Rs 18,000-crore investment plan spread over 10 years.
Creation of new capacity by Maruti Suzuki will automatically lead to new capacities by its auto parts suppliers and others in the supply chain network.
Recently, Korean heavyweight Hyundai announced a plan to invest Rs 4,000 crore in India to bring half a dozen electric cars to the Indian market. Motor Germany’s Volkswagen Group has committed investments of over Rs 8,000 crore in India. SAIC-owned MG Motor has also promised to pump in Rs 2,500 crore to augment capacity.
While foreign automotive companies are making big investments in the country, homegrown heavyweights are not far behind. Bajaj Auto has lined up Rs 650 crore, while TVS Motor Company has planned a Rs 1,200-crore investment towards setting up new capacities and technology development.
The automotive industry is one of the biggest sectors providing direct and indirect employment. It also commands a lion’s share of the manufacturing GDP of the country.
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