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Tamil Nadu to have auto-sector specific policy soon

Chennai, Nov 19 (IANS) Tamil Nadu will soon announce its automotive industry specific policy, a state government official said Friday.

‘The proposed policy will address many of the issues faced by the sector like lack of skilled manpower,’ Principal Secretary for Industries Rajeev Ranjan said in his address at Auto Serve 2010, a conference here on ‘Productivity and Efficiency in Automotive Services, Components and Spare Parts’ organised by Confederation of Indian Industry (CII).

The state government is discussing the policy with the State Manufacturing Competitive Council, he said.

Tamil Nadu, which already has production base of six major car makers and companies for the manufacture of commercial vehicles and tyres, will shortly have more major investments in these sectors, Ranjan said.

He said the state government is keen on tapping the huge employment potential offered by this sector and favours public-private-partnership (PPP) in training unemployed youth.

According R.Seshasayee, managing director of Ashok Leyland, the skyrocketing land prices is putting the profitability of city-based automotive dealership in question.

He said with increased use of electronics in vehicles there will be a dearth of skilled drivers.

R. Dinesh, chairman of Auto Serve 2010, and joint managing director of T.V.Sundaram Iyengar and Sons, said there has been a lot of apprehension among the key players in the aftermarket segment of the automotive industry about their future and their continued profitability.

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