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The Auto sector has played a key role in the industrialization of the State. Every single segment of the sector including two and three wheelers, passenger cars and commercial vehicles is represented in the State. The major automobile centres in the State include Pune, Nashik, Aurangabad and Nagpur. Pune is a home to large players like Bajaj Auto Ltd, Daimler Chrysler Ltd, TELCO, etc. While, Nashik is a home of India's largest multi-utility vehicle manufacturer, Mahindra & Mahindra.

The state accounts for approximately 38 per cent of the country's output of automobiles by value. Around 40 per cent of the workforce engaged in the automobile industry is employed in the state. The major automobile centres in the state include Pune, Nashik, Aurangabad and Nagpur.

The key competitive strength of the state in the automobiles and auto components industries is the presence of established manufacturers. The network of component suppliers and vendors is a critical consideration in deciding the location of any automobile unit. The strong presence of the engineering sector is an additional advantage to the state, along with its large skilled labour base. The good transport infrastructure in the state is also a positive factor for the logistics-intensive auto industry.

Prominent automobile and auto component players present in the state are Daimler Chrysler, Fiat, Skoda Auto, John Dierre, Tata Motors, Mahindra & Mahindra, Bajaj Auto, Kinetic Engineering, Cummins and Bharat Forge. Fiat India has recently set up a plant to manufacture passenger cars in Maharashtra. Tata Motors plans to invest US$ 1.3 billion in the next five years to increase the passenger car capacity at its Pune plant by 50 per cent. Skoda Auto had initiated an investment plan of US$ 53 million for its Aurangabad plant in 2003. Tyre manufacturer Michelin has decided to invest in the state for setting up its production facility. The company intends to invest over US$ 130 million in two phases in the state. JCB, the UK-based construction machinery major, is planning to set up a US$ 130 million manufacturing unit near Pune.