NEW DELHI: The Singur standoff has drawn sharp reactions from global auto companies which are pumping big investments into India. General Motors � which announced the opening of its $300-million (Rs 1,400 crore) second plant in India at Talegaon, Maharashtra earlier this week and has planned another $200-million powertrain plant at the same site � called the Singur situation �unfortunate� and said it didn�t help India�s investment image.
GM president and COO Fritz Henderson said: �It�s unfortunate for all concerned � for the Tatas, for the people involved and for the local government.� However, he added, that �it will not overly impact or influence our investment interest in India. We feel the Indian market has huge potential and we will do everything to tap it.� Dittoed Nick Reilly, president, GM Asia Pacific and GM group vice president: �Of course something like this does not help India�s image but we are happy with India as a place to invest. We have an excellent workforce, great technical ability and we want to grow presence here.�
GM isn�t the only company to say the India story is still strong, though the difficulties are now more apparent. Skoda Auto, which is part of the Volkswagen group, is also investing in product development and capacity addition in India. Like GM, VW is building a greenfield plant in Chakan Maharashtra. Skoda has its own facility in Aurangabad.
Thomas Kuehl, member-board of directors (sales & marketing), Skoda India told ET: �It is a pity but it will not damage India or scare away investors. Although it does show that India is no walk in the park.�
Global CEOs feel that if the Tatas, with their formidable reputation in India, can face this kind of trouble, MNC investors would need to be more careful. �The Nano is a high-profile project and the Tatas are an outstanding family in terms of their charity and social responsibility,� said Mr Kuehl. �That such a socially powerful organisation is getting hit by politics is scary. But I am confident there will be solutions.�
Meanwhile Nano vendors have indicated that they would follow Tata Motors out of Singur despite sinking big investments in the vendor park. Sona Koyo, part of the Sona Group, which is supplying steering assembly for Nano said it plans to pull out from Singur and follow Tata Motors wherever it goes. Sunjay Kapur vice-chairman Sona Group said, �We are committed to the Tatas and will go wherever they go. We have already invested in the steering assembly facility and any displacement will lead to heavy losses to the vendors. We are yet to receive any intimation from the Tatas over any change of location.�
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