Chennai's tri-engine growth How ports, parks, and production power India's supply chain

Chennai is emerging as South India's logistics hub, powered by manufacturing strength, strong maritime links and expanding infrastructure. Its role as a key export gateway aligns with national efforts to streamline freight movement and cut logistics costs, which have fallen from 14% to under 8% of GDP, supporting resilient supply chains.

- Nikitha Sebastian

The ascent of Chennai unfolds through three interconnected pillars: its manufacturing and electronics corridor, a tri-port maritime system, and its rapidly expanding network of warehousing and industrial parks.

Manufacturing and export base

According to the Department of Scientific and Industrial Research, Tamil Nadu produces about a quarter of India's automobiles, and 35 per cent of its auto components are largely concentrated around Chennai. Chennai's automotive corridor stretches about 60 kilometres and hosts major OEMs, including Hyundai, Renault-Nissan, Daimler India, Ashok Leyland and BMW, supporting strong manufacturing and export activity.

The Make in India programme has intensified this momentum, drawing new global investments, especially in electric vehicles and electronics. Foxconn's US$1.5 billion expansion to produce Apple components locally and Mercedes-Benz's fresh investments signal the rising tide of manufacturing in Tamil Nadu.

Electric mobility is now the new frontier. The region's pivot toward EV manufacturing is reshaping supplier networks and logistics practices–emphasising just-in-time delivery and integrated component flows. India's rapid recovery after the pandemic, with a GDP growth of 15.3% over 2021-2022 and sustained real rates at 6.5%, has fuelled confidence in the region's strategic importance.