• Posted on: 27 April 2016
  • By: admin

Auto & Auto component sector in Maharashtra


Maharashtra being located Strategically around various progressing states, on one side and near sea and natural ports on the other, provide a good support to Customer and export oriented sectors like Auto. Government of Maharashtra is providing good lift to Auto sector including creating auto hubs like Pune. Government of India, allowed 100% FDI in Auto sector.

Maharashtra has attracted highest share in FDI to India (30% from 2001-14 and 44% in 2014-15) and also considerable size of Export (27% of India). 


Auto in Maharashtra is amongst one of the highest industrial outputs in India, with domestic and export sale. 

Maharashtra has sold arund 19.4 million units in domestic markets and 3.1 million units in Export market in 2014. The estimates are to cross 30.4 million units in domestic and 5.3 million units in export.

The CAGR has been 21.08% with gross value of output in auto sector has increased from $6.4 billion in 2008-09 to $13.8 billion in 2012-13. 

India is expecte ot be third largest automotive markets with Turnover of around $115 billion by 2020-21. Maharashtra accoutns 38% of India's output by value. The CAGR in Maharashtra is 21.08% from 2009-2013. 

Maharashtra has Auto hubs in:

a) Mumbai

b) Pune

c) Nashik

d) Aurangabad

e) Nagpur

Pune is largest hub of India with over 4000 units in pimpri-chinchwad. Pune shelters Tata Motors, Mahindra & Mahindra, Bajaj Auto and International players like GM, Volkswagen, Mercedes etc.

Aurangabad is major hub with skoda, Bajaj, Goodyear tyres, Vorac Engineerng etc. having plants.

Automotive Research Association of India, the premier education institute in R&D is located at Pune. Auto Cluster Development and Research Instutitute works towards development of MSMEs around Pune. 

Fiscal Support

The Industrial Policy of Maharashtra and Packaged Incentive Scheme provides for various support to different types of units:

a) MEGA and ULTRA MEGA projects can qualify for upto 100% fiscal incentive on fixed Capital investment.

b) 10% additional incentive if project creates double the employement than minimum required to qualify.

c) VAT set off and VAT refund for MEGA projects.

d) VAT Refund under Industrial Promotion Subsidy to MSMEs.

e) 100% Stamp duty exemption to eligible MSMEs for acquiring Land and Term loan.

f) 100% electricity duty exemption to MSMEs. 


(source: MIDC-Auto & auto component sector)