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The Hindustan Ambassadordominated India's automotive market from the 1960s until the mid-80s
However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and
the license raj which hampered the Indian private sector. Total restrictions for import of vehicles were
set and after 1970 the automotive industry started to grow, but the growth was mainly driven by
tractors, commercial vehicles and scooters. Cars were still a major luxury item. In the 1970s price
controls were finally lifted, inserting a competitive element into the automobile market. [18] By the
1980s, the automobile market was still dominated by Hindustan and Premier, who sold
superannuated products in fairly limited numbers.[19] During the eighties, a few competitors began to
arrive on the scene.
To promote the auto industry the government started the Delhi Auto Expo which was had its debut
showcasing in 1986. The Auto Expo of 1986 was a window for technology transfers showing how the
Indian Automotive Industry was absorbing new technologies and promoting indigenous research and
development for adapting these technologies for the rugged Indian conditions. The 9 day show was
marked by then Prime Minister Rajiv Gandhi.
Liberalisation[edit]
Eventually multinational automakers, such as, though not limited to, Suzuki and Toyota of Japan
and Hyundai of South Korea, were allowed to invest in the Indian market ultimately leading to the
establishment of an automotive industry in India. Maruti Suzuki was the first, and the most
successful of these new entries, and in part the result of government policies to promote the
automotive industry beginning in the 1980s.[19] As India began to liberalise their automobile market in
1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The
variety of options available to the consumer began to multiply in the nineties, whereas before there
had usually only been one option in each price class. By 2000, there were 12 large automotive
companies in the Indian market, most of them offshoots of global companies. [20]
Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and neighbouring
countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe (Hungary). After some
growth in the mid-nineties, exports once again began to drop as the outmoded platforms handed
down to Indian manufacturers by multinationals were not competitive.[21]This was not to last, and
today India manufactures low-priced cars for markets across the globe. As of 18 March 2013 global
brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding
Group are shelving plans for India due to the global economic crisis.[22]
Emission norms[edit]
In tune with international standards to reduce vehicular pollution, the central government unveiled
the standards titled 'India 2000' in 2000 with later upgraded guidelines as 'Bharat Stage'. These
standards are quite similar to the more stringent European standards and have been traditionally
implemented in a phased manner, with the latest upgrade getting implemented in 13 cities and later,
in the rest of the
nation. Delhi(NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad,Ahmedabad, Pune, Surat, Ka
npur, Lucknow, Solapur, and Agra are the 13 cities where Bharat Stage IV has been imposed while
the rest of the nation is still under Bharat Stage III.
Manufacturing facilities[edit]
West Bengal[edit]
Passenger vehicles
Gujarat[edit]
Passenger vehicles
Commercial vehicles
Haryana[edit]
Two wheelers
Suzuki Gurgaon[30]
Passenger vehicles
Himachal Pradesh[edit]
Two wheelers
Passenger vehicles
Commercial vehicles
Jharkhand[edit]
Commercial vehicles
Karnataka[edit]
Two wheelers
Passenger vehicles
Commercial vehicles
Volvo India