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Maruti Suzuki is the market leader in Indian automotive industry. The automotive industry in India is one of the largest in the world with an annual production of 23. 16, following a growth of 2. 57 per cent over the last year. The automobile industry accounts for 7. The Two Wheelers segment, with 81 per cent market share, is the leader of the Indian Automobile market, owing to a growing middle class and a young population. India is also a prominent auto exporter and has strong export growth expectations for the near future.
15, automobile exports grew by 15 per cent over the last year. The industry produced a total 14. October 2014, registering a marginal growth of 3. The sales of PVs grew by 8. October 2015 over the same period in the previous year. The overall CVs segment registered a growth of 8. October 2015 as compared to same period last year.
October 2015, overall automobile exports grew by 5. PVs, CVs, 3Ws, and 2Ws registered growth of 6. In order to keep up with the growing demand, several auto makers have started investing heavily in various segments of the industry during the last few months. Global auto maker Ford plans to manufacture in India two families of engines by 2017, a 2. 2 litre diesel engine code-named Panther, and a 1. 2 litre petrol engine code-named Dragon, which are expected to power 270,000 Ford vehicles globally.
The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and increasing capacity in India. 1 billion in India by 2020, mainly to increase the capacity at the Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by 2025. Maharashtra, to manufacture Jeep Grand Cherokee model. Mercedes Benz has decided to manufacture the GLA entry SUV in India. The company has doubled its India assembly capacity to 20,000 units per annum. The Government of India encourages foreign investment in the automobile sector and allows 100 per cent FDI under the automatic route.
The Government of India aims to make automobile manufacturing the main driver of “Make in India” initiative, as it expects the passenger vehicles market to triple to 9. The government plans to promote eco-friendly cars in the country—i. CNG-based vehicles, hybrid vehicles, and electric vehicles—and also to make mandatory 5 per cent ethanol blending in petrol. The government has formulated a Scheme for Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission 2020, to encourage the progressive introduction of reliable, affordable, and efficient electric and hybrid vehicles into the country. 2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector.
In 1897, the first car ran on an Indian road. Through the 1930s, cars were imports only, and in small numbers. An embryonic automotive industry emerged in India in the 1940s. In 1952, the government appointed the first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per demands, in the future. The Tariff commission policies, including similar restrictions that applied to other industries, came to be known as the “license raj”, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic red tape ended up causing demand to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.
Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador. India, under license from Nissan of Japan. Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep. Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.