Indian Automobile Companies

India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks.

Current Scenario

Hero Honda is the largest manufacturer of motorcycles. Hyundai Motors India is the second largest player in passenger car market. Sundram Fasteners, Sundaram Clayton, Bharat Forge and Rico Auto supplies components to global majors like Ford, General Motors and Land Rover. Tata Motors is the fifth largest medium & heavy commercial vehicle manufacturer in the world.

Overview

In 1980s Hindustan Motors (HM) was leading car manufacturer in India. HM is popular with its Ambassador model. In 1970s, Sanjay Gandhi, son of Indira Gandhi envisioned "People's Car." Maruti Udyog Ltd. was set up to manufacture budget cars. In 1993 foreign auto makers entered the Indian market.

Facts & Figures

The onset of automobile industry in India saw companies like Hindustan Motors, Premier Automobiles and Standard Motors catering to the manufacture of automobiles for Indian customers. The era, 1950s - early 1990s was known as 'license raj,' when India was closed to the world and imports. Hindustan Motors (HM) was the leader in car manufacturing and sales until the 1980s, when the industry was opened up from protection. HM, joint venture with Mitsubishi produced Lancer and Pajero, but is best known for its own model, Ambassador.

Around 1970, Sanjay Gandhi, elder son of the then Prime Minister Indira Gandhi, envisioned the manufacture of an indigenous, cost-effective, low maintenance compact car for the Indian middle-class. The cabinet passed a unanimous resolution for the development and production of a "People's Car." It was christened Maruti Limited. However, the company as Maruti Udyog Ltd. matured only after the death of Sanjay Gandhi. The Maruti800 car went on sale in 1983. By 1993 it sold up to 1,96,820 cars.

1991, the liberalisation of the Indian economy opened the market for foreign automobile makers to venture in India. The license raj ended in 1993 and many foreign players entered the Indian market by way of Joint ventures, collaborations or wholly owned subsidiary.