DEPARTMENT OF INDUSTRIES AND COMMERCE,
GOVERNMENT OF TELANGANA

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Auto Industrial Parks in Telangana
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leading auto players
Gopalakrishnan VC
Director,
Automotive

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. 

Major Investments

hyundai
olectra
mytrah

Industry Speaks

We were floored with support, we were floored with infrastructure and also the talent in Hyderabad. We had few primary factors that led us to Telangana, i.e., a very proactive government, investor friendly policy, excellent public infrastructure and ecosystem.
Mamtha Chamarthi
CIO NA & APAC, Stellantis
The manufacturing ecosystem in Hyderabad and State Policy framework has been encouraging. We are not only making products to cater to the domestic market but also to export to East Asian and European markets. To meet our growing needs, we are planning to set up a larger facility in Hyderabad.
Sri Harsha Bavirisetty
COO, Gayam Motor Works
Besides being a hub for wide range of products for the Indian market, the plant in Telangana also caters to over 60 markets, including the US, Japan and Europe.
Hemant Sikka
President Farm Equipment, Mahindra & Mahindra

Government Support

  • Incentives: 

    – 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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