After Manufacturing, Will India Become Research Hub for Small Cars?

Saturday 19 September 2009, 00:00 AM by Satish Kalepu

The Indian government has sanctioned seven testing centers in India for research and development as well as testing of small cars in the country. All cars coming from Malaysia, Indonesia and Thailand will be tested at these centers prior to their launch. The government has allocated Rs. 1800 crores for these testing centers to be set up in India for cars that are currently tested in Europe and the US only.

These centers will be located at Manesar, Pune, Ahmed Nagar, Rai Barelli and three other centers in India. “Indian car manufacturers currently have to go to Europe and America for testing their products and this is for the first time that India is setting up such testing centers with fully government aided funds of INR 1800 crore,” said Mr A Sharma, Joint Secretary In Heavy Industry Ministry while inaugurating ASSOCHAM organized National Summit on Public Buying: Bringing Transparency and Accountability.

A combination of government incentives, private investment and a rapidly growing consumer market has been a boon for automobile and automotive-part demand in the country. India is already a manufacturing hub for small cars for Hyundai and Maruti Suzuki. General Motors, Fiat and Ford are other companies that are planning to make India as their manufacturing hub for small cars.