Tamil Nadu rejects claims of losing auto suppliers to Andhra Pradesh
The Industries Department stated that component suppliers follow original equipment manufacturers rather than political trends.
The Tamil Nadu Industries Department has rejected claims by the Opposition that the state lost three auto-component suppliers to Andhra Pradesh, according to ThePrint. The department described the narrative as a distortion of industrial economics.
The criticism followed the signing of MoUs by suppliers Hwashin, Seoyon, and Iwamet for projects worth a combined Rs 1,614 crore in Anantapur. These projects are expected to create approximately 1,418 jobs.
Industries Minister S. Keerthana's department stated that component suppliers locate near the Original Equipment Manufacturers (OEMs) they serve. The department said the investments in Anantapur follow an anchor manufacturer's decision to expand capacity there.
The department noted that Kia set up in Anantapur long ago and suggested the Opposition should explain why Kia chose Andhra Pradesh over Tamil Nadu. It added that two of the three firms are already operating in Anantapur.
Officials said that while the government tries to bring in all possible investment, 100 per cent of all investments coming to India cannot be brought to Tamil Nadu. They also stated that long-standing Hyundai suppliers, including Hwashin and Seoyon, continue to operate and expand in the state.
The department accused the DMK of double standards regarding previous projects. It noted that the state remains an automotive capital with an ecosystem across Chennai, Sriperumbudur, Hosur, and Coimbatore.