Make In India: Toyota, Ericsson, Oppo To Start & Expand Local Manufacturing; Indian Auto Industry To Cross $285 billion By 2026
PM Modi’s grand vision: ‘Make in India’ has now enchanted automobile major Toyota, communication technology company Ericsson and Chinese electronics manufacturer Oppo as they are looking for starting and expanding their domestic manufacturing units.
Toyota Will Invest Rs 1000 Crore
In an exclusive interview with ET, Toyota Motor chairman Takeshi Uchiyamada said that they will be investing close to Rs 1000 crore in the next couple of years to come up with new manufacturing units in India. Toyota is planning to establish one engine plant and start local manufacturing of their best sellers: Innova and Fortuner along with an unnamed mid-size sedan.
Daihatsu, their subsidiary which makes small sized cars and SUVs can also enter India, once the manufacturing process is finalized.
As per reports, Toyota is planning to manufacture 90,000 units of Innova and 30,000 units of Fortuner every year in India. In India, Toyota has tied up with Pune based Kirloskar to manufacture vehicles. As of now, Toyota-Kirloskar is India’s 4th largest car maker after Maruti Suzuki, Hyundai and Mahindra; and this infusion of Rs 1000 crore would be made under Toyota Kirloskar.
Ericsson To Open Their 2nd Unit
Swedish telecom company Ericsson will invest between $15-20 million (Rs 90-135 crore) to open up their 2nd manufacturing unit in Pune, which will produce radio equipment meant for exporting to 180 countries.
Bharti Airtel has already selected Ericsson to roll out their 4G services across the country; and the new manufacturing unit will be used to develop high-capacity telecom equipments which can ensure high speed of Internet. In fact, Ericsson is already looking at 5G technology, which can hit the market in the next couple of years.
Ericsson is also aiming to double their employee base in India. Right now, they have 21,000 employees working in various locations, which includes their only manufacturing unit in Jaipur.
Oppo Will Manufacture Phones
Chinese phone maker Oppo may collaborate with Foxconn to start manufacturing handsets in India. Earlier, Asus, Xiaomi and Gionee had kickstarted their domestic production; and in Xiaomi’s case, its Foxconn which will be manufacturing the phones.
As per Oppo, they will sell 1.1 million handsets by December end, and 1.5 million units by March, 2016. Their decision to open local manufacturing unit in India is observed as an aggressive move to expand in India and capture the market in a big way.
Automobile Sector Will Cross $285 Billion By 2026
Meanwhile, as per a report published by Department of Heavy Industries, it was revealed that auto-mobile sector in India will cross $285 billion by 2026, which will further propel Make in India vision, and take the campaign into the next level.
Hence, automobiles will contribute 12% of India’s GDP and 40% of manufacturing sector, which is phenomenal to say the least. The efforts of Make in India which is being done now, will no doubt assist the automobile sector, as more and more global companies are now setting up their shops in the country.
By 2016, the Automotive Mission Plan (AMP), roadmap created by Govt. to boost automobile sector would enable investments worth Rs 1.6 lakh crore, providing employment to 3.5 crore people.
Here is a recap of all Make In India investments and announcements made so far:
· Toyota to invest Rs 1000 crore
· Ericsson to start their 2nd unit
· Oppo will start manufacturing in India