Mahindra-Renault-Nissan – What next?

What’s happening to Chennai aka Madras? We had Ford first. Then Hyundai. Then Mitsubishi. Last year saw Hyundai announcing an expansion and the Ultimate Driving Machine – BMW setting up a plant here. And now the biggest of them all. Not one. Not two. The threesome thunder. Yes. Mahindra, India’s very own and very trusted Utility Vehicle Manufacturer has joined hands with the French major Renault and just to add a touch of performance and class comes in Nissan, trying to ‘Shift the Future’. All three together. A first in the world. 4 lakh cars a year. An investment of Rs. 4000 crores. Over 4000 jobs. This aint no small number. With this announcement Chennai has taken the big leap. Move over “Detroit of India”. Enter to an era where Detroit will be called “Chennai of the US of A”. This announcement is definitely a big big boost for the state and for the DMK government. It means a great value addition to the state’s GDP. It means a helluva lot for the already thriving auto component industry in the state. More than anything, it means something for a common man like me. A big smile. Everlasting happiness. And great pride. Way to go.

16 Comments so far

  1. Navneeth (unregistered) on March 6th, 2007 @ 11:00 pm

    This announcement is definitely a big big boost for the state and for the DMK government.

    I doubt the former. ;P

  2. Thad E. Ginathom (unregistered) on March 6th, 2007 @ 11:13 pm

    Politics! Claiming the credit, evading the blame; same old game.

    It doesn’t matter who is in power now (they’ll claim the credit) I’m sure this will have been in negotiation far longer than the life of this government so far. And may come to fruition when they are no longer in power! Then whoever it is next can claim the credit. The game goes on.

    But, unless the free TV sets offer is extended to shareholders, I don’t see the current crowd as being attractive to investors.

    Let us just hope that Chennai continues to attract investment, in spite of its rulers.

  3. Nilu (unregistered) on March 6th, 2007 @ 11:48 pm

    What’s with the atrocious language?

  4. Anand (unregistered) on March 7th, 2007 @ 3:08 am

    Awesome news…..

    more jobs, more cars, and MORE traffic….

    whoever has brought these deals to Chennai, Job well done, hats off to you guys….

  5. ip (unregistered) on March 7th, 2007 @ 6:27 am

    Lets not be too confident about the future. If in future they find someplace else is cheap. They will vacate chennai before you can say madras. But yes for the time being it is good and we have to be proud, but look at detroit, tens of thousands of employees there are losing jobs and pushed into compulsory retirement so Ford, GM and Chrysler can live.

  6. sathish (unregistered) on March 7th, 2007 @ 7:21 am

    Automobile manufacturing is being done mainly to take advantage of the fast growing Indian market not for exports. So your argument of low cost advantage going away etc is too long a shot. Even if that is the argument, India will remain low cost for a very very long time. We are still a developing country and will take very long time to bring all the low earning people to income levels seen in the west. Till such time most of the cost advantage will last

  7. Kaps (unregistered) on March 7th, 2007 @ 9:12 am

    Mahindra is not new to Chennai. They were the ones to tie up with Ford when Ford entered India. They had to part ways when Ford was looking for additional investment. I’m sure the Mahindra Renault-Nissan partnership will also go the same way.

  8. wetblanket (unregistered) on March 7th, 2007 @ 4:30 pm

    hmmm…hope they dont sell many of those cars in chennai – we dont have enough road space for the exploding growth of traffic seen now. the city is heading towards bangalore-like road conditions already.

  9. chennaite (unregistered) on March 7th, 2007 @ 5:29 pm
  10. shek (unregistered) on March 7th, 2007 @ 8:44 pm

    The best part is that families who’ll be affected by the land acquisition will be rehabilitated.

  11. Vasanth (unregistered) on March 7th, 2007 @ 9:33 pm

    It is indeed a great news for Chennai. Unlike any other industries, when an automobile company sets up a plant, you will also have lots of auto ancillary units setup along with it to cater to the plant. Therefore, the total investment would be much more than the plant investment and the indirect employment this will generate would be 3 or 4 times.

  12. Thad E. Ginathom (unregistered) on March 8th, 2007 @ 1:33 am

    The best part is that families who’ll be affected by the land acquisition will be rehabilitated.Which suggests that their homes are being taken away from them. And that is good?

  13. shek (unregistered) on March 8th, 2007 @ 9:07 am

    Yeah their homes are taken away from them but the company’s building new homes for them at a nearby site.Check out Business Line,Economic Times,The Hindu and The Indian Express–you’ll know.

  14. Thad E. Ginathom (unregistered) on March 9th, 2007 @ 12:23 am

    And are these people making a huge profit now their land has become so desirable to a big MNC — or is more like what might be called landgrabbing, if it wasn’t a big MNC?

    I don’t know… I just ask…

  15. sunny (unregistered) on March 10th, 2007 @ 10:57 pm

    No Pain, No Gain! Sure Land prices would go up this is purely coz of these MNCs…so why crib? Atleast they are getting alternate accomodation, while our own government would have settled with dosh…Worthless!

  16. Thad E. Ginathom (unregistered) on March 10th, 2007 @ 11:24 pm

    So long as you don’t mind being slung out of your family home because someone wants to build a factory there…

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