New auto projects of industry majors running behind schedule

Even though Indian automobile industry is eyeing a market of 2 million cars by 2010, various automobile projects of industry majors, like Tata Motors and Mahindra and Mahindra (M&M), are running behind schedule.

Tata Motors’ Rs 1 lakh car project and M&M’s tripartite joint venture in Chennai with Renault and Nissan has been delayed due to local controversies over land acquisition, say news reports.

All automobile projects due to come up in Uttarakhand were halted following a withdrawal of the mandatory environmental clearance by the state pollution control board.

Companies like Hero Honda, Bajaj Auto, Tata Motors, M&M and Ashok Leyland had announced setting up manufacturing facilities in the state, which would collectively entail an investment worth more than Rs 6,000 crore.

Hero Honda has put off its plans for its Haridwar plant on account of a managerial decision to postpone commencement as a result of falling sales in the domestic market. The rise in car loan interest rates have caused car sales to dip in the last few months.