According to New York Times report, India’s well-built engineering base and mastery in the production of economical and fuel-efficient cars has led to the expansion of manufacturing facilities of leading automobile companies.
India automobile industry is on a high-growth trajectory. In fact in 2009 Indian automobile industry emerged to be Asia’s fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. The economic liberalization in 1991 saw sustained growth, thanks to competitive markets and relaxed restrictions. Many of the Indian automobile manufacturers have embarked on a major expansion spree. Companies like Tata Motors, Maruti Suzuki and Mahindra and Mahindra are spreading their wings both in the Indian and the international markets. India’s strong economic growth rate has prompted multinational automobile manufacturers to further expand their domestic operations. India-centric investment has also become the focus of many multinational automobile manufacturers. In February 2009, the monthly sales of passenger cars in India surpassed 1, 00,000 units.
Inception of Indian Automobile Industry
In 1940s the Indian automotive industry was at a very nascent stage. In 1953, government of India and private sector came together to build an automotive component manufacturing industry to meet the rising needs of the automobile industry. Nonetheless the growth was not on the expected lines, rather relatively slow in the 1950s and 1960s due to the prevalence of nationalization and license raj. In due course, automobile industry started to grow, riding on the back of increased demand for tractors, scooters and commercial vehicles. Cars were still considered to be a rich luxury. Japanese manufacturers started entering the Indian marketplace, eventually leading to the establishment of Maruti Udyog. This set the pace, causing number of foreign firms entering into joint ventures with many Indian companies.
In 1980, a host of Japanese manufacturers set their sights on Indian markets leading to number of joint ventures being launched. The joint ventures were in the area of motor-cycle and light vehicle manufacturing. To make most of the rising opportunities, Indian government entered into an agreement with Suzuki to manufacture small cars for the Indian markets. Since then, Indian automobile industry has been scripting history as manufacturing accelerated to meet the requirements of both the domestic and export market.
Indian Automobile Exports in fast-gear
Today, India is known to the world’s largest manufacturer of small cars. According to New York Times report, India’s well-built engineering base and mastery in the production of economical and fuel-efficient cars has led to the expansion of manufacturing facilities of leading automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.
In 2008, Hyundai Motors exported almost 240,000 units from India. Nissan Motors probably will export 2,50,000 cars in 2011. Likewise, General Motors might export 50,000 cars by 2011.
Ford Motors is also planning to set a manufacturing plant in India, which eventually would turn into company’s global production house. The Ford cars manufactured in India would be meant for both the Indian and International markers. Fiat Motors has also stated that the company plans to source around US$ 1 billion worth auto components from India.
As per Bloomberg reports, India in 2001 has taken over China as Asia's fourth largest exporter of cars.
www.made-from-india.com maintains a huge database of manufacturers, exporters and suppliers of auto accessories, auto body building & parts, auto electrical sparesbrakes, tyres, auto parts, & tubes etc.
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