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Auto majors to setup mega projects in Karnataka

Karnataka, which already has the presence of automobile and machine tool majors like Toyota Kirloskar Motor and Bosch, has received a boost at the recent Global Investors Meet in Bangalore with companies keen on expanding their operations in the state.

Mr R Ashok transport minister for Karnataka said that to encourage auto and machine tool companies to invest in the state, auto SEZs in places like Shimoga and Bidadi are being set up.
The Bosch group has expressed interest to set up a plant to manufacture auto components in Bidadi over an area of 100 acres. The company is looking at an investment of INR 550 crore in the plant. It is yet to take a call on the manufacturing capacity of this plant and when it will start operations.

General Motors India is set to increase headcount at its Bangalore R&D centre from 1,600 to 2,000 employees by the end of the year. The company said it would develop its small electric car for India by leveraging a combination of its global technology and local knowledge of this centre.

Toyota Kirloskar Motor, which is setting up a second plant at Bidadi with an investment of INR 3,200 crore said phase one would have a production capacity of 700,00 units a year. The company said it would extend this capacity to 200,000 units a year in the second phase. It is planning to launch its small car Etios by the end of the year. It is also evaluating the possibility of exporting this car overseas. The company’s dealer network will increase from 74 to 150 by the end of 2010.

European machine tool maker MAG said it was planning to set up a technical centre in Bangalore. Mr Markus Grob president of MAG Europe said that "We are in the first stage of investigating the size of the centre." The company is evaluating the possibility of setting up a production centre in the state in the next few years.

Volvo Buses is also looking at further investment opportunities in the state.

(Source: BS)