KOCHI: Kerala has sought the cooperation of Tamil Nadu in establishing vehicle manufacturing units in the neighbouring state, with Kerala offering its automotive technology expertise, Industries Minister P Rajeev said on Saturday.
Speaking at the second edition of ‘Vyapar Kerala,’ hosted by the Federation of Automobile Dealers Associations (FADA), Rajeev said the two states stand to benefit immensely through the “collaboration” which would drive the future development in the region.“Tamil Nadu possesses the necessary land, and Kerala, despite its small landscape, is recognised for its technology solutions. Thiruvananthapuram has already turned into the automotive technology hub of India,” the minister pointed out.
Kerala boasts a remarkably strong automotive market, highlighted by 425 vehicles per 1,000 people, among the highest in the nation, and over a quarter of households owning a car, significantly above the national average of 7.5%. The state is also embracing the electric revolution, with EVs constituting 20% of all new vehicle registrations.
The minister also underscored Kerala’s improved ease of doing business ranking, securing the top position in the last two years after previously being at 20th. “This enhanced climate is part of a broader effort to lure more investors and create employment,” he said.