Renault in Chennai?
Well, we all know know that Renault is coming into India. The company is going to be a joint venture with Mahindra & Mahindra and the car they will come out with is the Logan. While the Logan is being manufactured at Nashik and is slated for a June 2007 launch, just last week Renault and Mahindra’s have announced a greenfield project in India with a capacity of up to 5 lac cars. And this is likely to go up to 7 lacs. While Renault officials have said that the new plant will essentially work on the Logan platform and extend it, it is rumoured that Nissan could well use this facility too. After all, Carlos Ghosn, heads both Renault and Nissan. And if all goes well, it could be right here in Madras. Talks are already on with the Government of Tamil Nadu and it looks like they are scouting for land between Ford & BMW on the Chengelpet highway. Hyundai, Ford, Mitubishi, BMW, Caterpillar, Ashok Leyland, MRF, Delphi, Visteon, Valeo, Clayton, TRW…. the list goes on and on and on. The automotive sector has clearly put Madras on the world map.
The Renault Boss in Chennai? Hmmm…certainly does signal the coming of age as South Asia’s so called “Detroit”. Not too long ago, he was hobnobbing with the honchos at GM and mulling a joint venture with them.
I am not sure how relavent the Detroit comparison is in today’s context. We certainly have a loooooong way to go to fulfil that potential. The automobile industry cannot sustain itself on its own. We need to pump in the infrastructure, the roads, the traffic system, safety practices, a predictable and quality oriented supply chain, and well- enough buyers. Take away all that, and the industry will simply collapse under its own weight. Remember the Standard Motors factory that is now a ghost stretch of asbestos roofs and rusting equipment?
Lets just hope all the dynamics of this ecosystem falls into place – else, even decades down the road, people will be talking about Madras as the Detroit that was never meant to be.