Pune’s development lies mainly in the city’s auto sector. Auto sectors and auto component sectors gather around 50% of the total investments coming into this region. In the Pune auto cluster, presently there are around 500 Small and Medium Enterprises (SMEs) that produce auto components. The yearly turnover of this cluster is approximately Rs 10,000 crores (excluding automobile majors like Kinetic Engineering, Bajaj Tempo, Bajaj Auto & Tata Motors).

The major products from the Pune cluster are clutch components, gear components, brake components, shafts, axles, valves, engine components, electrical components, etc. The cluster uses raw materials like rubber, plastic and metals. There are many support institutions for the cluster from educational sector, research sector, IT sector and more.

Pune might be the favourite destination for the IT sector, but it is a major auto destination as well, according to a study conducted by the Mahratta Chamber of Commerce, Industry and Agriculture. In an initiative under the IIUS scheme for the Auto Cluster in Pune, there are some support facilities that are planned. These are the Auto Electronics Center, that will have an R&D lab and a common testing facility; CAD\CAM Center which will have a rapid prototyping facility, a common facility center, power back up facility and CNC machining center and new infrastructure facilities like fiber optic connectivity, solid waste disposal, CETP, wireless communication facility and market development facility.

Challenges
The major problem that the cluster faces is that of infrastructure. Lack of proper power facilities is a big constraint faced by the cluster.

There are a few issues which restrain India from attaining the status of other global players. Despite being around 60 years old, the domestic auto industry lags behind other countries like South Korea, Brazil and Mexico in terms of production and sales. This makes it difficult for companies to invest extensively in R&D, a key competitive tool in the global market.

Countries like China and Thailand might put a spanner in the domestic industry's wheels as they are capable of beating India at its own game, that of low cost. The growing number of FTAs (Free Trade Agreements) that are being signed by India with countries like Thailand, Singapore, China etc is likely to hurt the domestic players as they pay a relatively higher duty of around 25% as compared to 1%-10% being paid by its Asian counterparts. Other reasons include higher tariffs and resistance to IT.

Project Vikas Initiatives
Project Vikas has planned a number of initiatives to tackle these challenges. Under the project, sensitisation programs are being conducted to help enterprises understand how the challenges before them can be well addressed through use of ICTs.

Project Vikas is also in the process of setting up an e-Readiness Centre in the cluster. Training programmes for the local independent software vendors are being conducted. Workshops for the CxOs and Directors of enterprises on ICT training are also being conducted. Workforce training programmes are also planned.

To enable business development of the enterprises, Project Vikas has envisaged a Web portal which would enable these businesses to connect with other business, and help them find customers as well.