Automobile industry in India

In 1897, the first car ran on an Indian road. Through the 1930s, cars were imports only, and in small numbers. The first car to be manufactured in India was the Hindustan Ambassador.

An embryonic automotive industry emerged in India in the 1940s. Hindustan Motors was launched in 1942. and a long-time competitor Premier was launched in 1944, and then building Chrysler, Dodge, and Fiat products respectively. Mahindra & Mahindra was established by two brothers in 1945. Following independence in 1947, the Government of India and the private sector launched efforts to create an automotive-component manufacturing industry to supply to the automobile industry. In 1953, an import substitution program was launched, and the import of fully built-up cars began to be restricted.

India became the fourth largest auto market in 2018 with sales increasing 8.3 per cent year-on-year to 3.99 million units. It was the seventh largest manufacturer of commercial vehicles in 2018. Two wheelers dominates the market due to a growing middle class and a young population.

How local manufacture encouraged by government?

Import tax on car is around 125% in India. While around 10% on components such as gearbox, airbag, and drive axles. This high taxes encourage car assembling in India rather than importing completely one.

Automobile market analysis

Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-19. In FY19, year-on-year growth in domestic sales among all the categories was recorded in commercial vehicles at 17.55 per cent followed by 10.27 per cent year-on-year growth in the sales of three-wheeler.

Automobile export grew 14.50% during FY19. While during April-December 2019 it increased by 3.9%. Premium motorbike sales recorded 7 times jump in domestic sale in India. Reached 13,982 during April-September 2019. The sale of luxury cars stood between 15,000 to 17,000 in first 6 months of 2019.

Sales of electric two-wheeler are estimated to have crossed almost 55,000 vehicles in 2017-18.

What is Automotive Research Association of India for standardisation: 

The Government of India felt the need for a permanent agency to expedite the publication of standards and development of test facilities in parallel with the work of the preparation of the standards – as the development of improved safety critical parts could be undertaken only after the publication of the standard and commissioning of test facilities. The Ministry of Surface Transport (MoST) constituted a permanent Automotive Industry Standards Committee (AISC). The Standards prepared by AISC will be approved by the permanent CMVR Technical Standing Committee (CTSC). After approval, the Automotive Research Association of India (ARAI) will publish this standard.

When and how emission norms started?

Introduced in 2000, the Bharat norms are emission control standards that are based on the European regulations (Euro norms). They set limits for release of air pollutants from equipment using internal combustion engines, including vehicles. Typically, the higher the stage, the more stringent the norms.

The BS IV norms were introduced in 13 cities apart from the National Capital Region from April 2010 onwards. According to the roadmap, the entire nation was to be covered under BS IV by April 1, 2017. BS IV fuel was also to be made available across the country from April 1 this year

Other developing countries have already upgraded to the equivalent of Euro V emission norms a while ago. So, India is lagging behind even after implementation of BS IV norms. Perhaps to compensate for this, BS V standards will be skipped and BS VI norms are proposed to come in by April 2020. Both vehicle manufacturers and fuel suppliers are already working to abide by this deadline.

Famous India based car manufacturing company
Foreign joint venture manufacturers, in India
Electric vehicle manufacturers in India
A next level (driver-less) technology in India

There is a lot of controversy on possibility of driver-less cars in India, many Startups are working on this technology, some company as given below:

One thought on “Automobile industry in India

  • June 7, 2020 at 3:34 pm

    Good explanation 👍👍🙏


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