Indian Automotive Passenger Car Revolution
India’s passenger car industry has evolved from restricted production to global competitiveness—driven by liberalization, FDI, and now a push for EVs, semiconductors, and green hydrogen as sustainability reshapes the future of mobility
Until the late 1980s, with emphasis on indigenizing parts and assemblies, limited models manufactured by Hindustan Motors, Premier, and Mahindra & Mahindra were available in petrol and diesel. The new revolution started with the entry of Maruti Cars in India in 1983. It was a purely supply-driven market.
Post-liberalization Phase in Indian Passenger Car Industry
The 1990s started with a significant slowdown in the economy during 1991. The government liberalized the economy; thus, a shift from mere indigenization to efficiency and better designs started.
Post-liberalization, car makers previously not allowed to invest in the Indian market arrived in the country. Maruti & Suzuki joint venture, Toyota and Kirloskar joint venture, Hyundai, and Honda expanded their base in the country.
Around this time, LPG and Natural Gas were introduced as alternate fuels.
Expansion of the Automotive Industry
2000-2010, the automotive industry was fully delicenced, with the free import of Automate components and 100%FDI allowed. Almost every major car company expanded its presence in India by establishing manufacturing facilities nationwide.
Focus on exports of automobiles from India
Maruti Suzuki was among the first car brands to ship vehicles to major European Markets. During this decade, the Indian Government introduced mandatory Emission Norms…
Create an account to continue reading
Create AccountAlready have an account? Sign in
Need an expert in this space?
Talk to an Industry Expert
Knowledge Ridge connects decision-makers with carefully vetted subject matter experts for one-on-one calls, research sprints, and advisory engagements — across 11 sectors and 163 sub-industries globally.
Comments
No comments yet. Be the first to comment!