Two Years of New AP – Racing Automobile Sector

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Tomorrow will mark two years of the formation of new state of Andhra Pradesh. The emotions have been and are riding high, counting on the new avenues that lay ahead. Two years down the line, not many would have fathomed the kind of traction the state has received, both from global and national investors.

Exactly two years ago, the AP state government had only one mission – attract as many investments as possible into the region from across the sectors. Right from the CM’s overseas tours convincing East to come and invest, to the recent ultra-successful CII summit in Vizag, Andhra Pradesh as such has been doing everything it can to up the scale and push the limits.

The growth of investments in the automobile sector are worth mentioning in the midst of hundred other things. The new state has single-handedly managed to attract and sign in some of the gigantic players that exist in the domain.

This credit can definitely attributed to the think tank of Mr Chandrababu Naidu. It is noteworthy to mention about the rapid advancements in the sector, thanks to the surging interest in the upcoming new capital city, Amaravati. While all eyes are indeed on the next breakthrough capital city of India, this has not deterred investors to open shops in the Seema region. There is more incoming, what with the ongoing happy developments in the form of Sri City and Electronic City.

Two Years of Andhra Pradesh – Investments in the Automobile Sector

AP Govt had robust plans right from the beginning, to develop the Nellore-Chittoor belt into an automobile sector. These plans are seeing an actionable outcome, two years down the line. The new state brought out an automobile policy for the companies in the sector, gaining more attention and interest to invest.

Here are some of the significant investments in the automobile sector:

iSuzu Motors

Nara-Chandrababu-Naidu-Chief-Minister-of-Andhra-Pradesh-and-Masanori-Katayama-President-Isuzu-Motors-Limited Two Years of New AP - Racing Automobile Sector


The Japanese utility vehicle manufacturer opened a Rs. 3,000 crore facility in Sri City, only lately, fetching all eyes to look at the Seema region. With Isuzu’s new base in Sri City, the scope seems unlimited, in terms of revenue generation, employment and industrial scalability. Economic dynamics will automatically take a paradigm shift with Isuzu. Close of 3000 man jobs will be created catering to 50k units of Isuzu vehicles annually. The plans are also on to scale the number to 120,000 units later on.

Hero MotoCorp

hero Two Years of New AP - Racing Automobile Sector


Call this the Game of Thrones or whatever, the arrival of national two-wheeler giant into AP was nothing short of spectacular drama. Hero will now invest Rs. 800 crore in its plant at Madanaapalem of Chittoor district. Hero’s plant will generate close to 1500 jobs this year and 3,500 the next. The plans are to produce units in the range of 1 to 5 lakh units in the starting year alone. The scaling number being looked at is 2 to 8 lakh per annum. This means more employment in the region as well as the state.

Bharat Forge

forge Two Years of New AP - Racing Automobile Sector


Nellore gets a new industrial boost with Bharat Forge coming its way. Forge’s integrated auto components hub will soon see a solid base in the region, with an investment of Rs 1,200 Cr. This is not just about the job generation for 3,000 men and women. Forge’s scope with auto components shows way for the possible sub liaisons with the other players coming into the region. Though thought of as a long shot, check the stats.

Forge is one of the few technology driven global leaders into metal forming. The brand has a transcontinental presence across nine manufacturing locations. Forge also serves several other sectors other than automobile; power, oil and gas, construction & mining, rail, marine and aerospace.

This 2.5 billion dollar conglomerate with 10,000 global work force has its manufacturing facilities spread across India, Germany, Sweden and France. The sustenance of Forge base in AP automatically opens doors to unimagined horizons.

Ashok Leyland

leyland Two Years of New AP - Racing Automobile Sector


The name that entire world is familiar with, Leyland is all set to open its next body building plant in Mallavalli Village of Krishna District with an investment of nearly Rs. 1,000 crore. Second largest commercial bus manufacturer in India and 4th largest in the world, this automobile giant waiting to start a shop in Andhra makes one look at the bigger picture. Leyland’s turnover in easily in excess of USD 2.3 billion and boasts of brand presence across 50 countries. Ashok Layland is one of the most fully-integrated manufacturing companies in the world at large.


kobelco Two Years of New AP - Racing Automobile Sector

Though we are talking crane manufacturing here, Kobelco’s footprint on the soil of Andhra makes a significant noise on the world podium. The giant intends to expand the already operational and moving plant established at the Sri City. The player had commenced work for second production unit last year, and is contemplating on further plans.

The rise of automobile industry in AP, in a short span of two years makes way for better scope and workable associations ahead. Economic stability is largely being looked upon, along with next possible breakthrough developments.



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