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BACKGROUND

HISTORY

In 1953, the government of India and the Indianprivate sectorinitiated manufacturing processes

to help develop the automobile industry, which had emerged by the 1940s in a nascent form.Between 1970 to the economic liberalization of 1991, the automobile industry continued to growat a slow pace due to the many government restrictions. A number of Indian manufacturesappeared between 1970-1980. Japanese manufacturers entered the Indian market ultimatelyleading to the establishment ofMaruti Udyog.[8] A number of foreign firms initiated jointventures with Indian companies.Timeline of Indian automobile industry:

1897 First Person to own a car in India - Mr Foster of M/s Crompton Greaves Company,Mumbai

1901 First Indian to own a car in India - Jamsetji Tata

1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata

1905 Fiat Motors 1911 First Taxi in India

1924 Formation oftraffic police

1928 ChevroletMotors

1942 Hindustan Motors

1944 Premier Auto Limited

1945 Tata Motors

1947 Mahindra Motors

1948 Ashok Motors 1948 Standard Motors

1974 Sipani Motors

1981 Maruti Suzuki

1994 Rover Motors

1994 Mercedes Benz

1994 Opel

1995 Ford Motors

1995 Honda SIEL

1995 Reva Electric Car Company

1995 Daewoo Motors

1996 Hyundai Motor Company

1997 Toyota Kirloskar Motors

1997 Fiat Motors (Re-Entry)

1998 San Motors

http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Crompton_Greaveshttp://en.wikipedia.org/wiki/Jamsetji_Tatahttp://en.wikipedia.org/w/index.php?title=Suzanne_RD_Tata&action=edit&redlink=1http://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/Taxicabhttp://en.wikipedia.org/wiki/Highway_patrolhttp://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Standard_(Indian_automobile)http://en.wikipedia.org/w/index.php?title=Sipani_Automobiles&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Hyundai_Motor_Companyhttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Crompton_Greaveshttp://en.wikipedia.org/wiki/Jamsetji_Tatahttp://en.wikipedia.org/w/index.php?title=Suzanne_RD_Tata&action=edit&redlink=1http://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/Taxicabhttp://en.wikipedia.org/wiki/Highway_patrolhttp://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Standard_(Indian_automobile)http://en.wikipedia.org/w/index.php?title=Sipani_Automobiles&action=edit&redlink=1http://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Hyundai_Motor_Companyhttp://en.wikipedia.org/wiki/Government_of_India

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1998 Mitsubishi Motors

2001 koda Auto

2003 Chevrolet

2005 BMW

2007 Audi 2009 Land rover and jaguar

Following the economic reforms of 1991, the automobile section underwent delicensing andopened up for 100 percent foreign direct investment. A surge in economic growth rate andpurchasing power led to growth in the Indian automobile industry, which grew at a rate of 17%on an average since the economic reforms of 1991. The industry provided employment to a totalof 13.1 million people as of 2006-07, which includes direct and indirect employment. The exportsector grew at a rate of 30% per year during early 21st century. However, the overallcontribution of automobile industry in India to the world remains low as of 2007. Increasedpresence of multiple automobile manufacturers has led to market competitiveness andavailability of options at competitive costs. India was one of the largest manufacturers oftractors

in the world in 2005-06, when it produced 2,93,000 units. India is also largely self-sufficient intyre production, which it also exports to over 60 other countries.[3] India produced 6.5 crore tyresin 2005-06.

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CURRENT STATUSThe automobile industry in Indiathetenth largest in the worldwith an annual production ofapproximately 2 million unitsis expected to become one of the major global automotiveindustries in the coming years.[2] A number of domestic companies produce automobiles in Indiaand the growing presence of multinational investment, too, has led to an increase in overallgrowth.[3] Followingthe economic reforms of 1991 the Indian automotive industry hasdemonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. [3]

The monthly sales of passenger cars in India exceed 100,000 units. [4]

Indias car market has emerged as one of the fastest growing in the world. The number of carssold domestically is projected to double by 2010, and domestic production is skyrocketing asforeign makers are setting up their own production plants in India. The governments 10-yearplan aims to create a $145 billion auto industry by 2016.

According to McKinsey & Company, the auto sectors drive to lower costs will push

outsourcing. The auto sector could be worth $375 billion by 2015, up from $65 billion in 2002.McKinsey thinks India could capture $25 billion of this amount. Out of 400 Indian suppliers, 80percent have theISO 9000 certificatethe international standard for quality management.[10]

The production of automobiles in India is largely aimed at local consumers.[10] Several Indianmanufacturers also export a diverse variety of auto components.[11]Tiku (2008) predicts a sale of42 lakh four wheeler automobiles in India by 2015.[12] Indian passenger vehicle exports are alsoexpected to rise from 1,70,000 in 2006 to 5,00,000 in 2010.

Exports

Hyundai i20, one of the most widely exported cars solely made in India.

India has emerged as one of the world's largest manufacturers of small cars. According to NewYork Times

, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobilecompanies like Hyundai Motors,Nissan, Toyota, Volkswagen and Suzuki.[13]

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans toexport 250,000 vehicles manufactured in its India plant by 2011. [14] Similarly,General Motorsannounced its plans to export about 50,000 cars manufactured in India by 2011.[15]

India automobile companies, mainly Maruti Suzuki, Tata Motors and Mahindra, have beenaggressively expanding their overseas market too. Prominent India-made automobiles which arewidely exported include:

Maruti Suzuki - exports Suzuki Alto, Maruti 800, Maruti Omni, Maruti Wagon-Rand Zen Estilo[16]

Hyundai Motor Company - exports Hyundai Santro, i10,Hyundai Getz,i20 and Hyundai Accent- 42% of its India production

Tata Motors - exports Tata Safari,Tata Novus andTata Xenon

Mahindra & Mahindra Limited - exports Mahindra Scorpio andMahindra Xylo

http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/McKinsey_&_Companyhttp://en.wikipedia.org/wiki/ISO_9000http://en.wikipedia.org/wiki/ISO_9000http://en.wikipedia.org/wiki/Hyundai_i20http://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/Hyundai_Motorshttp://en.wikipedia.org/wiki/Hyundai_Motorshttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Volkswagenhttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Wagon-Rhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Hyundai_Motor_Companyhttp://en.wikipedia.org/wiki/Hyundai_Atoshttp://en.wikipedia.org/wiki/Hyundai_i10http://en.wikipedia.org/wiki/Hyundai_Clickhttp://en.wikipedia.org/wiki/Hyundai_Clickhttp://en.wikipedia.org/wiki/Hyundai_i20http://en.wikipedia.org/wiki/Hyundai_i20http://en.wikipedia.org/wiki/Hyundai_Accenthttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Tata_Safarihttp://en.wikipedia.org/wiki/Tata_Novushttp://en.wikipedia.org/wiki/Tata_Novushttp://en.wikipedia.org/wiki/Tata_TLhttp://en.wikipedia.org/wiki/Tata_TLhttp://en.wikipedia.org/wiki/Mahindra_&_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Mahindra_Scorpiohttp://en.wikipedia.org/wiki/Mahindra_Xylohttp://en.wikipedia.org/wiki/Mahindra_Xylohttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automotive_industryhttp://en.wikipedia.org/wiki/McKinsey_&_Companyhttp://en.wikipedia.org/wiki/ISO_9000http://en.wikipedia.org/wiki/Hyundai_i20http://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/Hyundai_Motorshttp://en.wikipedia.org/wiki/Nissanhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Volkswagenhttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/Maruti_Wagon-Rhttp://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Hyundai_Motor_Companyhttp://en.wikipedia.org/wiki/Hyundai_Atoshttp://en.wikipedia.org/wiki/Hyundai_i10http://en.wikipedia.org/wiki/Hyundai_Clickhttp://en.wikipedia.org/wiki/Hyundai_i20http://en.wikipedia.org/wiki/Hyundai_Accenthttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Tata_Safarihttp://en.wikipedia.org/wiki/Tata_Novushttp://en.wikipedia.org/wiki/Tata_TLhttp://en.wikipedia.org/wiki/Mahindra_&_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Mahindra_Scorpiohttp://en.wikipedia.org/wiki/Mahindra_Xylo

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