Bangalore, March 1, 2013: Japanese auto component manufacturers, primarily SMEs, are keen to establish production units in Karnataka and Chennai, said Naoyoshi Noguchi, chief director general, Japan External Trade Organisation (JETRO), New Delhi.

Noguchi is part of a delegation of 50 auto and allied sector SMEs from Japan on a visit to auto destinations in Karnataka and Tamil Nadu. He was speaking at a seminar organised on ‘Karnataka Auto and Engineering Sector’ yesterday in Bangalore.

The country has three auto clusters -- Bangalore-Chennai, Pune-Gujarat and Delhi. Of these three, the Bangalore-Chennai industrial corridor is emerging as most promising destination for Japanese auto companies to set up manufacturing units. (In fact, the finance minister made a reference to this as part of his infrastructure proposals in the Budget 2013-14). While Toyota already has operations at Bidadi, near Bangalore, Honda is setting up its two-wheeler plant in Karnataka. The road connectivity (a national highway connecting Bangalore-Chennai) and port connectivity, particularly Mangalore and Chennai, are added advantages.

The Indian tour of Japanese delegates included a visit to the Toyota Kirloskar plant and Bill Forge in Jigini industrial estate, near Bangalore. Some of these SEMs are already supplying parts to Toyota in Japan. If there is an opportunity, they may set up their shops near Bangalore to cater to the needs of TKM, said Deepak Anand, a JETRO official in Bangalore. Japanese auto and allied sector SMEs are also assessing the feasibility of setting up their units in the upcoming Special Economic Zone (SEZ) promoted by GMR Group in Hosur, 40km from Bangalore. Hosur, which is where OEMs and component majors like Ashok Leyland, TVS and Avtec have manufacturing facilities, is one of the major auto ancillary hubs in South India. As per JETRO’s estimate, at present, Bangalore has 230 Japanese companies, a majority of them catering to the auto industry. Around 50 companies were added in the last year and on an average, the number of Japanese companies is increasing at above 20 percent every year. Apart from existing clusters like Hoskote, Bidadi, Ramanagar and Dharward, the state government is now developing new auto clusters in Shimoga, Belgaum and Hubli-Dharward.

Photograph (L-R): Naoyoshi Noguchi, chief director general, JETRO, Masafumi Tamura, MD, Aisin NTTF India, Hiroshi Nakagawa, MD, Toyota Kirloskar Motor, Soichi Yoshimura, EVP, JETRO at the seminar orgainsed by JETRO on the Karnataka auto and engineering sector.

JAISHANKAR JAYARAMIAH