Indian Automotive Industry

Golden era of growth ahead.

- Vinod K Dasari

The automotive industry is a reflection of the growth and development of the economy. It enables socio-economic development through transportation of goods, and mobility of people. It exemplifies the dreams and aspirations of the people of a country.

From the first car to run on the road, more than a century ago, the Indian automotive industry has certainly come a long way. Today, we have annual sales of more than 20 million vehicles. There are more than 40 players, including most global players, operating in the Indian automotive market, offering a wide variety of products ranging from motorcycles, to scooters, to passenger cars, SUVs, pick-ups, tractors, buses, all the way to heavy trucks.

Post-Independence and uptill 1982, the industry was primarily a seller’s market with just five players – Ashok Leyland, Tata Motors, Mahindra, Bajaj Auto and Hindustan Motors – making products with relatively out-dated technologies and having licensed production capacities.

During the mid-1980s, with the opening up of the sector, we had Japanese companies like Honda, Suzuki, Kawasaki and Yamaha and Korean companies like Hyundai and Daewoo coming to India through joint ventures and partnerships. This effectively ended the license-raj and opened the market for consumers, giving them more product choices, affordable vehicles, shorter waiting times and access to newer technologies. Through the liberalisation decade of the 1990s, we saw a rapid growth in both personal and public transportation. The automotive industry drove the wave of growth in the Indian economy, fuelling the dreams of the rising middle class.