Qualitative Analysis and Impact Assessment of Chennai Automotive Industry Cluster

Abstract

The Chennai is one of India’s largest auto hubs due to its Automotive Industry presence producing India’s Vehicle and Components. The Chennai Automotive Industry Cluster(CAIC) faced problems on infrastructure, technology, procurement, production and marketing. During diagnostic study it if found that there is need for Cluster Development Approach(CDA) for these Industries. The objective is to study on the qualitative analysis and impact assessment of CAIC before and after the CDA and develop a CAIC Model. The methodology adopted is collection of primary qualitative data from 100 Industries using questionnaire and analyzing using Reliability Analysis(RA), Test for Proportion(TFP), Chi-Square Test(CST), Kolmogorov–Smirnov(KS) one-sample Test and Impact assessment is carried out to find the performance of the cluster after intervention at three level viz., Firm level, Association level and Cluster level The RA proves the data are reliable. It is found using TFP that the proportion of sampled industrial units agreeing for better Infrastructure, Technological, Procurement, Production and Marketing Interrelationships. The CST reveals that there is no association between locations with respect to variables and the fact states that location of the industrial units plays a major role in establishing related vital intervention strategies. The KS Test reveals that there is significant difference in each of the variables under study after CDA. In Firm Level Impact Assessment, the level of impact in respect of technology interrelationships, Production interrelationships and Marketing interrelationships seems to have High Impact. The level of impact in respect of Infrastructure Interrelationships and Procurement Interrelationships seem to be having moderate impact. In Association / Network Level Impact Assessment the three individual Associations / Network level impact seems to be high. The Cluster Level Impact assessment is also high when all the three locations are taken into account. The CAIC Model, demonstrates the fact that industrial units have utilized the Physical Infrastructure and Centralized Facilities by adopting the CDA.