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AP’s automobile sector attracts Rs. 24,600 cr proposals in 4 years

Automobile sector in Andhra Pradesh has attracted proposals worth $3.7 billion (approximately Rs.24,600 crore) over the past 4 years. With several key automobile players already having a manufacturing base in the state, Andhra Pradesh is transforming into a fast-growing India’s automobile hub. 
 
Isuzu motors, located at Sri City in Chitoor, has been setup with committed investment of Rs.1,500 crore and created employment for about 1,200 people. The plant has annual production capacity of 50,000 vehicles.

Isuzu’s vendors such as NHK Springs, Tata Toyo, ALF Engineering, etc, have started operations, and companies such as Mahabal Metals, Wheels India, RSB Transmissions, are under development around the Isuzu Motors plant location.
 
To give a fillip to the backward districts in the state and make them revenue generating hubs, the State Government last year released a “Backward districts Ultra Mega integrated Automobile Policy” to attract investments of over $1 billion.

This policy helped attract one of the largest FDI investments in recent years in India, in form of a $2 billion investment from Koran automotive giant Kia Motors, along with its subsidiaries and ancillaries, in Anantapur district. 
 
The plant, with a production capacity of 3 lakhs vehicles per year is expected to generate permanent employment for over 4,000 people and temporary employment for over 7,000 people. At the same time, Kia’s vendors are going to generate employment for more than 6,600 people. Construction of the Kia Motors facility is progressing at a fast pace and is expected to start trial production in January 2019.
 
Additionally, the State has been able to attract investments in the automotive sector from marquee companies such as Apollo Tyres, Ashok Leyland, Bharat Forge and Hero group.

The State Government has also released a dedicated ‘Electric Mobility Policy’, and is geared up to attract investments in the electric mobility sector

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