Market and Country Intelligence: Optimal Location for a Car Manufacturing Facility

Suitable location for setting up an auto manufacturing unit


A multinational, European car manufacturer was looking to set up a production facility in India. While the company had narrowed down on four Indian States, they needed inputs to select from among them, based on granular analysis of their relative attractiveness. Since this was to be the company’s first plant in India they needed detailed and accurate insights on:

– The past and current political and economic situation in the state

– State government policies and incentives for multinational corporations

– Availability and cost of labour, land, power, raw materials, components, etc.


India knowledge + quality primary inputs to supplement desk research


ValueNotes identified three broad sets of parameters for benchmarking the states: operating costs, structural factors and quality of life attributes. Further, auto ancillary manufacturers and auto ancillary clusters in each state were identified and a list of present car manufacturers operating in the state was collated.


We obtained the finer details on the policies and incentives provided to multinational companies by each of the State governments through intensive primary research.


A SWOT framework was used to compare and evaluate the relative attractiveness of the four States. To facilitate objective decision making, a rating methodology that incorporated all qualitative and quantitative parameters into a composite score for each State, was devised.


ValueNotes created a presentation of the findings for the Company Board.


Superior insights = greater confidence in decision making


ValueNotes leveraged its experience in assisting companies with their India entry strategies to provide on-the-ground actionable inputs and valuable insights. This helped the client reach a decision on a suitable location that optimised various political, social and economic considerations.

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