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India set to become the Detroit of Asia?

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The first BMW produced in India, signed by the Tamilnadu Chief Minister.Image courtesy: The Hindu.

Daimler Chrysler AG is set to join the ranks of BMW and Ford by setting up its own plant in India.

The construction of a fully owned plant began on Thursday near Pune in western India. Although the company currently uses the leased plant of Tata Motors to make its Merc’s, the new plant is aimed at meeting the demand for luxury cars in India.

A statement released by Daimler said

DaimlerChrysler is investing 2.75 billion rupees ($67.5 million) in the new plant that will have a capacity to produce 5,000 vehicles annually, the company said in a statement. It will initially employ 350 people.

Construction began after Vilas Rao Desmukh, the elected head of Maharashtra state, where the plant is located, inaugurated the project.

This means that car enthusiasts will get to spot more luxury cars stalled in traffic that moves at a snails pace.

Who do you think will be next major car company to come to India?

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  • Yup, India don't have emission control and in 10 years we'll hear about their toxic air and people are dying on the street for breathing in so much of their exhaust.

  • India doesn't have the infrastructure the U.S does

  • Santosh: I am pretty sure that Ford has it's own facilities. GM is partnering with Hindustan Motors.

    Honda and Toyota are also in India, but I forget who their Indian partners are.

    And about this turning into a nightmare. It is already happening. We do not have the infrastructure. A long time ago when a car company (Hyundai) I think entered the market, they said the cars are here, the roads will come.

    The roads have come, in some places, the highway system is getting better, but congestion still exists in the city and someone needs to figure this out.

    In the long run, this cannot be good for India or the world.

  • I have to point out as great as this may seem - Chennai being the next Detroit, etc, with the lack of any effective emissions control in most places in India, this could turn out be an environmental nightmare for the country.
    Seriously, unless some major infrastructure changes are made and emissions control is put in place, the last thing Indian cities want are more cars on the roads.

  • "I have to point out as great as this may seem - Chennai being the next Detroit, etc, with the lack of any effective emissions control in most places in India, this could turn out be an environmental nightmare for the country."

    I agree...their people will be poisoned by their air quality.

  • Ford and GM will be next. I wont be surprised if Honda, Toyota and other Japanese companies also make a beeline for India. US automakers are in deep sh!t over rising production costs, coupled with union troubles, employee pension and all the overheads associated means more US based automakers are looking for other venues. Chennai and Pune are booming auto-production towns right now.

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