The Chennai also called as Detroit of India due to its Automotive Industry presence producing over 40% of the India’s Vehicle and Components. During 2001-02, the Chennai Automotive Industry Cluster(CAIC) consists of Ambattur, Thirumalizai and Thirumudivakkam Industrial Estate located in Chennai had faced problems on infrastructure, technology, procurement, production and marketing. During diagnostic study it is found that there is need for Cluster Development Approach(CDA) for these Industries. The objective is to study on the qualitative analysis of CAIC before and after the CDA and develop a CAIC Model. The methodology adopted is collection of primary data from 100 Industries using qualitative questionnaire and analyzing using Test for Proportion(TFP), Chi-Square Test(CST), and Kolmogorov–Smirnov(KS) one-sample Test. To conclude all the enterprises in the cluster have contributed to improve the qualitative performance and cluster as a whole. This CAIC Model can be implemented in Industries of under developed and developing countries for cost reduction and productivity increase. Their is also export of products to North & South-America, Europe, Australia & Asia.