Indian Automobile Sector

Last year, 2.6 million units of new cars wereleading to the set up of Maruti Udyog which is
produced in India. This made the country thenow known as Maruti Suzuki and is the largest
seventh largest auto market in the world. In theselling automotive major in India. Many other car
continent of Asia, India is the fourth leadingmakers soon made their entry on Indian roads.
exporter of cars, after Japan, South Korea andIt was in the 1980s that the car industry started
Thailand. It has been projected that in another 40seeing growth. There were many global
years, the Indian automobile sector will top theautomotive majors coming to India with intentions
world in car production and around 611 millionof building joint ventures. Everybody smelt the
automobiles will be playing on the Indian roads.potential that the Indian automobile sector
The economic liberalization in India that happenedpossessed and wanted to explore it further.
in 1991 brought in an increase in competitivenessSeveral Japanese car makers launched
and a relaxation in restrictions. Post 1991, thejoint-ventures for building light commercial vehicles
Indian car market has been displaying steadytoo.
growth. Many Indian automotive majors likeIn recent times, India has appeared as one of the
M&M, Maruti Suzuki and Tata Motorslargest manufacturers of small cars globally. India's
expanded their base both in India and abroad. Thesturdy engineering base and proficiency when it
Indian automobile sector's healthy and financiallycomes to production of affordable, fuel-economic
viable growth led to the internal development andcars has led to the expansion of production
also gave rise to noteworthy India-specificfacilities of various car manufacturers like Hyundai,
investments by multinational car makers. InToyota, Nissan, VW and Maruti Suzuki.
February last year, the monthly sales ofTwo years ago Hyundai alone had exported
passenger cars in India had exceeded 100,000around 2,40,000 cars, all made in India. By next
units.year, Nissan plans to export at least 250,000 units
Post Indian independence in 1947, theproduced in its plant in India. GM too has great
Government of India and the private sector tooplans for India. The car maker's Indian subsidiary,
launched several programmes to build an autoChevrolet has been doing real well and GM wants
industry, but in vain. Noticeable changes beganabout 50,000 cars manufactured in India in a
only in the 1970s, and that too, only in the truck,year's time. The sales figures for almost all car
tractor and two-wheeler automobile sectors. Carsmanufacturers in India have been displaying an
were still considered just a luxury and not aall-time high and this has been projected to grow
necessity. Luckily, Japanese manufacturers slowlyfurther.
made their entry in the Indian market finally