Industry outlook & opportunity in Telangana
India
India is expected to be the world’s 3rd largest automotive market in terms of volume by 2026. The industry currently manufactures 23 mn vehicles, of which 3.5 mn are exported. India holds a strong position in the international heavy vehicles arena as it is the largest tractor manufacturer, second-largest bus manufacturer and third largest heavy trucks manufacturer in the world.
Sale of passenger vehicles has increased by 10%, three-wheeler by 18% during 2021-22 viz-a-viz 2020-21. In April-March 2021, overall automobile exports grew by 41%. The overall Commercial Vehicles segment registered a growth of 80% in April- March 2021. The sector attracted $4.9 bn FDI during H1FY22; being the second highest sector attracting FDI.
All this combined with a young populace, increasing vehicle penetration, growing income and higher interests in automotive R&D is set to make India an attractive spot for investments in this sector.
Telangana
Telangana has a long history of auto sector presence with the likes of Hyderabad Allwyn limited and HMT bearings. The current auto sector presence in the state is led by Mahindra group, Hyundai and MRF tyres. A factor that works in favour of Telangana to emerge as the auto hub is the shift from IC engines to Electric mobility. This requires new infrastructure altogether and Telangana is well poised to provide the same.
Telangana has been one of the early stages to understand EV adoption and has put in place many enablers for EV adoption. The government has been proactive in implementing central government schemes while also taking help from private sector to ensure creation of charging infrastructure. Electricity tariffs have been rationalized to incentivise users and charging station operators. The state is also aware that adoption of EV will create huge opportunity in manufacturing of vehicles, batteries and other components. The state has already received many investment offers from global companies to set up their units in Telangana. Telangana has strong connectivity with the demand centers, strong auto motive ecosystem with investor friendly government policy.Â
Major Investments
Industry Speaks
Government Support
Incentives:Â
– Upto 20% capital subsidy
– Upto 100% reimbursement of stamp duty & registration fees,
– Upto 100% electricity duty exemption
– SGST reimbursement
– Upto 25% power subsidies & 60% transport subsidy
EV-ESS Policy: Investor friendly EV-ESS policy to make Telangana a global hub for new mobility and strengthen the entire ecosystem. Policy to provide preference to Local EV manufacturers in govt procurement
Ease of Doing Business: 1. Ranked consistently in Top 3 states under Ease of Doing Business in the past 5 years. 2. Single Window for clearance 3.Deemed approval after 15 days 4. Meet or Beat Policy
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Address:
INVEST TELANGANA CELL,
Industries and Commerce Department,
3rd Floor, Dr. B.R. Ambedkar Telangana Secretariat Rd, Central Secretariat, Khairtabad, Hyderabad, Telangana 500022
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