AP Government  is attracting major automobile companies like Honda, Hyundai, Maruthi  to set up their plants. Mr. J.S.V.Prasad, principal secretary of industries department said that Automobile Policy 2014-19 is intended to give a boost to auto industries in Andhra Pradesh.

According to the policy revealed by the government these hubs will come up between Nellore and Chittoor. The Government will provide land depending on availability on a case to case basis. It will also provide uninterrupted power supply and within 60 days all state clearances will be provided under the single window system. The government also assured that incentives given by the Centre as per the AP Reorganisation Act will be extended to these companies.  It also plans to provide four lane road connecting the plant to the nearest highway.

This project will have an engine plant, body shop, press shop, transmission line, assembly line, paint shop with an investment of above Rs.1,500 crore.

Automobile companies will also bring ancillary units with an outlay of Rs500 crore within three years and under the policy they would be eligible for incentives.

Companies should invest in training, undertake corporate social responsibility and must provide jobs to locals within three years of the establishment.