It is not only the beautiful temples, beautiful beaches, and delicious food that Chennai is famous about. It is also the leader in the car and motorcycle world. Consider it as the primary garage of India, in which a number of the largest brands in the car and bike industry have established themselves. The figures indicate its significance. The Chennai region is a large contributor to the Indian economy and the auto industry in this region is valued above 25 billion dollars.
This one city and the adjoining regions contribute approximately 35 per cent of the total car and auto-parts industry of India. Thousands of vehicles are exported every year by Automobile companies in Chennai and the surrounding region and the annual exports regularly exceed more than $5 billion. These factories have the ability to produce over 1.5 million cars annually and that is amazing.
Why then did this coastal city emerge as the king of the Indian auto scene? So what is it about Chennai that gives it the title, the Detroit of Asia?
Why Chennai Is India’s Auto Hub
Chennai became a car magnet not by accident. A number of factors converged to make it the ideal destination of the automotive boom.
A Good Location on the Coast
Imagine that you have a new car. What are you going to do with it to ship to a different country? Ship, naturally. Chennai is directly on the coast of the Bay of Bengal, and has two large ports: the Chennai Port and the Ennore (Kamarajar) Port. These ports are huge doors which allow companies to import parts of their products manufactured in distant locations and more importantly, export completed cars, motorcycles and trucks to all parts of the world. Actually Ennore port was enhanced to be able to accommodate massive export of cars and currently it exports hundreds of thousands of cars annually.
A Center of Brains
A car is complex to build. You require genius engineers to design it, laborers to construct it and intelligent managers to operate the show. The state in which Chennai is situated, Tamil Nadu has never neglected education. There are numerous engineering colleges, polytechnics and Industrial Training Institutes (ITIs) around the city. This constant supply of well trained, skilled individuals is a big attraction to any firm that wants to establish a world class factory.
A Strong Helping Hand from the Government
The Tamil Nadu government has never been against businesses particularly manufacturing. It has been pampering the automotive companies as special guests over decades. It developed special industrial parks and special zones, areas where companies could literally hook-up to roads, power and water. The state was also providing handsome tax concessions and single window clearances so that the firms need not go to numerous government offices to obtain approvals. This initiative resulted in the ease and attractiveness of investing and constructing massive factories in the state.
A Car Company Does Not Do It All
A car company does not usually do all its own parts. It purchases tires, seats, windows, nuts, and bolts among other items to smaller, specialized firms. This is the ancillary industry of part suppliers. Chennai already has one of the oldest and powerful ecosystems in the auto components industry in India. Companies making everything including small screws and complicated engine components have been operating in this area over several years.
This implies that a factory in Chennai can just stroll to its suppliers and spend less on transportation. This is an extensive network: there are over 350 big automobile component producers in the region.
List Of Top 10 Automobile Companies In Chennai
1. Hyundai Motor India
- Founder: Chung Ju-yung (Founder of Hyundai Group)
- Founded In: 1967 (Parent Company)
- Export & Market Presence: The biggest exporter of passenger-cars in India exports cars to over 88 countries.
- Website: https://www.hyundai.com/in/en
- Address: Plot No. H-1, SIPCOT Industrial Park, Irrungattukottai, Sriperumbudur Taluk, Kanchipuram District, Tamil Nadu – 602117
When we refer to the auto story of Chennai, Hyundai comes to mind first. Among the most prominent automobile companies in Chennai, they were among the earliest international giants to have a belief in India and established a base there in the 1990s. Their plant at Sriperumbudur, Chennai is an example of modern production today. It is an all-inclusive plant, which has sophisticated robotics and massive production capacity. Hyundai made Chennai to be on the map of the world automotive industry by becoming their global export center of small cars.
Their success made other international companies have the confidence of investing in the region. It is not a factory but a big campus with its own research and development center that makes sure that their cars are made to suit Indian roads and tastes. Hyundai is a pillar of the local economy as it directly employs thousands and indirectly thousands more via its supplier base.
Key Products:
- Hyundai Creta
- Hyundai Venue
- Hyundai i20
- Hyundai Verna
2. Renault Nissan Automotive India Private Limited
- Founder: Louis Renault, Marcel Renault, Fernand Renault (Renault); Yoshisuke Aikawa (Nissan)
- Founded In: 1899 (Renault); 1933 (Nissan)
- Export & Market Presence: This plant is a large export hub of Renault and Nissan. The factory exports cars to over 100 nations.
- Website: https://www.renault.co.in/
- Address: Plot No.1, Sipcot Industrial Estate, Oragadam, Mattur Post, Sriperumbudur Taluk, Kanchipuram District, Chennai, Tamil Nadu – 602105
The two major automobile giants, the French firm, Renault and the Japanese firm, Nissan, collaborated in the construction of a massive facility in Oragadam, a suburb of Chennai. The project was the largest single foreign investment in the auto industry in India when it was opened. The factory is able to manufacture a variety of cars of both brands on the identical production lines.
They are rolling out small city cars to mighty SUVs, both to the Indian and international markets. This factory has enhanced the image of Chennai as an excellent manufacturing location. It also drives technology and production to a higher level and this makes the environment around it lively.
Key Products:
- Nissan Magnite
- Renault Kwid
- Renault KKey iger
- Renault Triber
3. Royal Enfield
- Founder: Albert Eadie and Robert Walker Smith
- Founded In: 1901
- Export & Market Presence: Royal Enfield is a renowned middle-size motorcycle brand. It markets to over 60 nations.
- Website: https://www.royalenfield.com/in/en/
- Address: (Corporate Office) No. 96, Ega Trade Centre, Old No. 68, Pantheon Salai, Egmore, Chennai, Tamil Nadu – 600008
Royal Enfield is not only a company but a legend. It is followed by a cult following all over the world and its heart is in Chennai. Among the iconic automobile companies in Chennai, the company has its origin in Britain, but its present identity and re-emergence is entirely Indian. Royal Enfield produces its vintage motorcycles with their iconic throb in and around Chennai in state-of-the-art facilities. In Chennai, there was only one factory in Tiruvottiyur during many decades.
Two newer plants in Oragadam and Vallam Vadagal are now producing more bikes to satisfy skyrocketing demand across the world. Royal Enfield demonstrates how a heritage company can be a global winner by manufacturing in Chennai with modern technology. It is a motorcycling heritage, which is proudly made in Chennai.
Key Products:
- Classic 350
- Himalayan
- Interceptor 650
- Hunter 350
4. Ashok Leyland
- Founder: Raghunandan Saran
- Founded In: 1948
- Export & Market Presence: Ashok Leyland is one of the leading producers of commercial vehicles in India and is well established in SAARC, Africa and in the Middle East.
- Website: https://www.ashokleyland.com/in/en
- Address: No. 1, Sardar Patel Road, Guindy, Chennai, Tamil Nadu – 600032
The likelihood is that you have ridden in a city bus or a state bus in India or you have seen a large truck carrying freight on the highway and that vehicle was manufactured by Ashok Leyland. The company is a first mover and a pillar of the Indian commercial transport sector. As one of the leading automobile companies in Chennai, and the flagship company of the Hinduja Group, it has its headquarters and the oldest manufacturing plant in Chennai. Ashok Leyland is the second commercial vehicle manufacturer of India.
It has been making the vehicles that make the nation, over decades—whether it is rugged trucks and tippers to build the nation or buses that carry millions of people every day. It is also highly involved in the defence industry where it provides specialized vehicles to the Indian Army. Ashok Leyland is a local Chennai giant with its huge legacy.
Key Products:
- Trucks (Dost, Partner, Ecomet)
- Buses (Lynx, Cheetah, Viking)
- Light Commercial Vehicles
- Defence Vehicles
5. BMW India
- Founder: Karl Rapp, Camillo Castiglioni, Franz Josef Popp
- Founded In: 1916 (Parent Company)
- Export & Market Presence: BMW sells some engines to other countries as well as targeting the luxury car market of India.
- Website: https://www.bmw.in/
- Address: Mahindra World City, Natham Sub Post Office, Chengalpattu, Kanchipuram District, Tamil Nadu – 603004
BMW is always in the top of the list when people are thinking about luxury cars. Chennai is also a strong ground for BMW. To cope with the rising demands of premium cars in India, the German carmaker has established a modern assembly plant in Mahindra World City, which is a few miles away from Chennai. BMW does not manufacture cars in huge quantities as Hyundai, but its factory is known to be precise and of high quality.
It is there that the company assembles kits of imported parts that are mainly made in Germany to assemble some of its most popular cars and SUVs. The availability of BMW in Chennai proves the city to be one of the best automotive centers that can be able to produce the best manufacturing standards in the world. It demonstrates that Chennai is not only about mass-market automobiles, but also it manufactures luxury, high-end cars.
Key Products:
- BMW 2 Series Gran Coupe
- BMW 3 Series
- BMW X1, X3, X5 SUVs
- MINI Countryman
6. Daimler India Commercial Vehicles (BharatBenz)
- Founder: Gottlieb Daimler, Carl Benz (Founders of predecessor companies)
- Founded In: 1926 (Daimler-Benz)
- Export & Market Presence: Daimler sells trucks and buses to over 60 countries in Asia, Africa, Latin America and the Middle East.
- Website: https://www.bharatbenz.com/
- Address: SIPCOT Industrial Growth Centre, Oragadam, Mathur Post, Sriperumbudur Taluk, Kanchipuram District, Tamil Nadu – 602105
Mercedes-Benz is the brand name of Daimler, which is a global brand. In India, they are doing business as Daimler India Commercial Vehicles (DICV) and market their trucks and buses under the brand name BharatBenz. They have a powerhouse of a modern manufacturing plant in Oragadam, Chennai. It produces a complete line of fuel-efficient, safe trucks and buses designed to operate on the Indian rough roads.
The facility has its research center and a test track to ensure that all vehicles are in perfect operation. Within a few years, DICV has emerged as one of the big players in the Indian commercial vehicle industry and makes the Chennai plant a major export hub of Daimler worldwide.
Key Products:
- BharatBenz Heavy-Duty Trucks
- BharatBenz Medium-Duty Trucks
- BharatBenz Buses
- Mercedes-Benz Buses
7. TVS Motor Company
- Founder: T. V. Sundaram Iyengar
- Founded In: 1978
- Export & Market Presence: TVS is among the largest two-wheelers manufacturers in India. It sends scooters and motorcycles to more than 80 countries in Asia, Africa and Latin America.
- Website: https://www.tvsmotor.com/
- Address: (Corporate Office) “Chaitanya”, No. 12, Khader Nawaz Khan Road, Nungambakkam, Chennai, Tamil Nadu – 600006
TVS is a local company based in Chennai, which is well established and trusted in India. As one of the leading automobile companies in Chennai, the company has remained focused on innovation and quality since its inception, and hence its scooters and motorcycles are dependable and of high technology. Its vehicles are mostly manufactured in the big plant in Hosur, which is located very near Chennai and in an expanded industrial corridor.
TVS produces all types of vehicles: everyday commuter mopeds, such as the XL100, popular scooters, such as the Jupiter and Ntorq, and performance motorcycles, such as the Apache series. TVS has also partnered with BMW Motorrad in order to manufacture premium motorcycles in India for the world. This is a joint venture that further enhances the industrial image of Chennai.
Key Products:
- TVS Apache Series
- TVS Jupiter & Ntorq Scooters
- TVS Raider
- TVS iQube Electric Scooter
8. Ford Global Business Services
- Founder: Henry Ford
- Founded In: 1903 (Parent Company)
- Export & Market Presence: The Chennai facility assists Ford in international business and technological solutions.
- Website: https://www.india.ford.com/ (Provides information on service)
- Address: (Global Business Services) Ford Global Technology & Business Center, SIPCOT IT Park, Siruseri, Chennai, Tamil Nadu – 603103
Here, Ford used to manufacture cars. The company had operated a large plant close to Chennai and produced the Figo and EcoSport to sell in India and to export. In 2021, Ford ceased car production in India. The Chennai center is however very important. Ford has a huge Global Business Services (GBS) and technology facility in the city today, which serves as the brain of its global operations. It employs thousands of people on software development, data analytics, finance, and other major occupations in the global business of Ford. Thus, Chennai is still a central component of the Ford motor and IT engine despite the car factory having shut down.
Key Products:
- (Previously Manufactured) Ford EcoSport, Ford Figo, Ford Endeavour
- (Current Services) Software Development, Global Business Process Management
9. Yamaha Motor India
- Founder: Genichi Kawakami
- Founded In: 1955 (Parent Company)
- Export & Market Presence: Yamaha is a large brand in the Indian two wheeler industry. Its sporty and stylish motorcycles are marketed not only in India but also exported to a number of markets by the Japanese brand.
- Website: https://www.yamaha-motor-india.com/
- Address: Plot No. VV-1, Vallam Vadagal, SIPCOT Industrial Park, Sriperumbudur Taluk, Kanchipuram District, Tamil Nadu – 602105
Yamaha also operates a huge plant in Chennai. As one of the prominent automobile companies in Chennai, it runs a contemporary facility that manufactures scooters and motorcycles for Indian consumers. The factory supports the Yamaha philosophy of Kando, which is based on establishing an emotional connection between the company and the riders through their products. This Chennai factory produces motorcycles like the R15 and the FZ series, and fashionable scooters like the Fascino and the RayZR. The plant will be central to Yamaha’s strategy to capture a larger share of the Indian two-wheeler market that is growing rapidly and to be the manufacturing hub of most of its flagship models.
Key Products:
- Yamaha R15
- Yamaha FZ Series
- Yamaha Fascino 125
- Yamaha RayZR 125
10. Isuzu Motors India
- Founder: Yoshisuke Aikawa
- Founded In: 1916 (Predecessor Company)
- Export & Market Presence: Targets the Indian market in pickup trucks and SUVs and intends to use India as an export base.
- Website: https://www.isuzu.in/
- Address: #603, 6th Floor, ‘A’ Wing, K G N Towers, No. 62, Ethiraj Salai, Egmore, Chennai, Tamil Nadu – 600105
Isuzu is another well-known Japanese brand that is known throughout the world as the manufacturer of the most durable and reliable utility vehicles as well as the master of diesel engines. To produce their iconic D-MAX pickup trucks and MU-X SUVs, they have developed their Indian manufacturing base in Sri City, which is quite near Chennai. Isuzu is not as big in terms of volume as other players but it serves a particular segment of customers with a demand in rugged durable vehicles in both personal and commercial use.
Their D-MAX pickup has especially gained a lot of popularity in the lifestyle adventure segment. The availability of a niche producer such as Isuzu brings yet another dimension to the automotive industry in Chennai, proving that it is able to accommodate any type of vehicle production, including small vehicles as well as heavy-duty pickups.
Key Products:
- Isuzu D-MAX V-Cross (Lifestyle Pickup)
- Isuzu D-MAX S-CAB (Commercial Pickup)
- Isuzu MU-X SUV
Key Automotive Component Companies
Chennai is also well known because of the numerous component makers. These automobile companies in Chennai manufacture nuts and bolts required in automobiles and they are sometimes referred to as the unsung heroes of the automobile industry. They are in three influential groups:
- The Amalgamations Group
- The TVS Group
- The Rane Group
Both groups have their headquarters in Chennai and have been a major contributor to the industry over the past decades.
The main actors are:
- Brakes India (TVS Group): They produce braking systems.
- Sundram Fasteners (TVS Group): They manufacture high-tensile fasteners, which are the nuts and bolts which are super strong and hold the car together.
- Rane Group: They are masters in the production of the critical steering and suspension components, the components that aid in the steering of the car and provide a smooth ride.
- India Pistons (Amalgamations Group): They are the leaders in the manufacturing of pistons, rings and cylinder liners which is the core of the engine.
The giant car factories could not work without these firms and hundreds of others like them.
Conclusion
Chennai is the Detroit of Asia due to the great location, smart people, favorable policies, and a powerful network of automobile companies in Chennai that collaborate with one another. In the city of Chennai, the giants of the world and the local heroes co-exist to create the cars that transport people and entire economies.
The next time you are driving, take a close look at the surrounding cars and bikes. There is a high probability that the car, which is a complex of thousands of properly assembled elements, started its life in the amazing industrial center of Chennai. Chennai is not just a car manufacturing city; it is also an industry that is making India move ahead.
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FAQs
What is the reason Chennai is referred to as the Detroit of Asia?
Similar to the American city Detroit that was the hub of the U.S. auto industry, Chennai is the one and only major hub of automobile and auto component production in India and the South Asian region.
What is the largest car producing company in Chennai?
Historically, Hyundai Motor India is the biggest car manufacturer in the region of Chennai in terms of production volume and the largest car exporter in India.
Do Chennai have electric vehicle (EV) companies?
Yes! TVS Motor (through its iQube scooter) and Ola Electric (through its giant factory in the same industrial corridor) are key players in the EV field. Most of the current companies are also switching to manufacture EVs in their Chennai factories.
So what is the future of the auto industry in Chennai?
The future is electric and bright! The industry is now moving towards Electric Vehicles (EVs) and Chennai will be one of the key manufacturing centres of EVs with large investments.
