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Why Chennai Is India’s Auto Hub: Plants, Output and Exports

Why Chennai is called the Detroit of Asia: the carmakers around Sriperumbudur and Oragadam, the state's output and export figures, and what is changing in 2026.

Updated

How Chennai became India's car factory

Tamil Nadu makes about a quarter of India’s four-wheelers, about 36% of its two-wheelers and about 35% of its auto components, according to the state’s investment agency, Guidance Tamil Nadu. Most of the car-making is concentrated in a belt west and south-west of Chennai, around Sriperumbudur on the Bengaluru highway and Oragadam to its south, which is why the city keeps its old nickname, the Detroit of Asia.

The state’s own industries policy note for 2024-25 puts it in output terms: using the Annual Survey of Industries for 2021-22, Tamil Nadu ranked first in India for motor vehicles and trailers, with output of Rs 2.02 lakh crore, or 23.34% of the national total. Here is what sits behind those numbers.

The headline figures

Measure Figure Source and year
Motor vehicle output Rs 2.02 lakh crore (23.34% of India) ASI 2021-22, via state policy note
Share of India’s four-wheelers About 25% Guidance Tamil Nadu (undated)
Share of India’s two-wheelers About 36% Guidance Tamil Nadu (undated)
Share of auto components About 35%, over 1,500 factories Guidance Tamil Nadu (undated)
Motor vehicle exports from Tamil Nadu Rs 25,069.92 crore 2023-24, Lok Sabha answer
Auto component exports from Tamil Nadu Rs 20,168.65 crore 2023-24, Lok Sabha answer

The export figures come from a commerce ministry reply in the Lok Sabha on 1 April 2025. Together, cars and parts accounted for more than Rs 45,000 crore of the state’s exports in 2023-24. Guidance Tamil Nadu also says the state produces about 40% of India’s tyres. Its sector page does not date its production shares, so treat them as the agency’s current claim rather than a fixed-year statistic. We could not access SIAM’s state-level data to cross-check them.

Who makes what around Chennai

The policy note describes an automotive cluster around Sriperumbudur that includes Hyundai, Yamaha, Eicher, Renault Nissan, Daimler and Mobis, among others. A few of the bigger names in more detail:

  • Hyundai Motor India, at Sriperumbudur, was founded in 1996. By its 30th foundation day in May 2026, it had sold over 13.5 million vehicles and exported over 3.9 million to more than 150 countries, Autocar Professional reported. Its Sriperumbudur and Talegaon (Pune) plants together have capacity of 9.94 lakh vehicles a year, with a further Rs 45,000 crore of investment planned for FY26 to FY30.
  • Renault Nissan Automotive India runs a plant near Chennai with capacity of more than 4 lakh units. In March 2025, Renault agreed to buy Nissan’s 51% stake and become sole owner, DT Next reported, while Nissan said it would keep exporting from India.
  • Ford stopped making cars at Maraimalai Nagar in 2021, citing about $2 billion of losses over a decade. It later announced a Rs 3,250 crore plan to revive the plant, with about 650 jobs, and has resumed talks with the new state government, The Week reported in July 2026. No restart date had been set.

Commercial vehicles, two-wheelers, tyres and component makers fill out the picture. Guidance’s list of leading companies includes Ashok Leyland, TVS, Mahindra, BMW, Daimler, Yamaha, MRF, Apollo, CEAT, JK Tyre, Michelin, the Sundaram group firms and Motherson.

How Chennai got here

The parts base came first. Ambattur Industrial Estate, which became functional in the mid-1960s, drew so many auto component makers that Tata Engineering and Locomotive Company opened a procurement centre in Madras, according to Madras Musings. Then Industries Minister R. Venkataraman also pushed the TVS group to set up components manufacturing near Padi. That supplier network, the ports and a skilled workforce were the base the big carmakers built on from the mid-1990s onward.

Ports and exports

Being close to the sea is a large part of the story. Guidance Tamil Nadu says every manufacturing facility in the state is within three hours of a port or airport. Chennai Port shipped over two lakh cars in 2025-26, and Kamarajar Port at Ennore handled 1,61,384 vehicles in 2024-25. Kamarajar’s annual report says its general cargo berth had handled more than 23.80 lakh car exports in total by 31 March 2025, including Nissan’s 11-lakhth export car in June 2024 and a first shipment of 500 Citroen eC3 electric cars to Indonesia in April 2024.

Electric vehicles and what is changing

The newer growth is in electric two-wheelers, which are mostly made outside Chennai, in Hosur and the western districts. The state policy note says EV clusters in the western region have produced more than 40% of India’s EV output, and Guidance says nearly 60% of India’s electric two-wheelers are made in Tamil Nadu. The two figures measure different things, but both point the same way.

For Chennai, the near-term questions are whether Ford’s Maraimalai Nagar plant reopens and what Renault does with its Chennai plant as sole owner. Both will shape jobs across the southern suburbs and in the supplier estates at Ambattur, Guindy and Thirumudivakkam.

Quick answers

Why is Chennai called the Detroit of Asia?

Because of the dense cluster of car, commercial vehicle and parts makers around it. Tamil Nadu produced 23.34% of India’s motor vehicle output in 2021-22, per the state’s policy note.

Which car companies have plants near Chennai?

Hyundai, Renault Nissan, BMW and Daimler are among them. Ford’s Maraimalai Nagar plant has been shut since 2021, with revival talks under way.

How much does Tamil Nadu export in vehicles?

Rs 25,069.92 crore of motor vehicles and Rs 20,168.65 crore of auto components in 2023-24, per the commerce ministry.

Information checked against official sources on 18 October 2026. Fees, dates and rules can change; confirm on the linked official pages before acting.

Sources

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