Rise of Indian Automobile Manufacturing

India automobile manufacturing come through a tough patch of socialism and License Raj. When India gained independence, Hindustan Motors was the only Indian car maker in India. The Nehruvian Socialism had a pretty bad impact on Indian Automobile sector. In 1954, Ford & GM down their shutters due to License Raj.

Things started to shape when Sanjay Gandhi planned to manufacture car in India. Maruti Udyog Limited was formed with JV along side Japanese automobile maker Suzuki. Maruti 800 was the first car that rolled out from the newly formed JV. This rose the Indian car sales to 1 lakh in 1985. This rose to 2 lakh in 1989. It take 15 years to increase the value 5 times when 10 lakh cars were sold in 2004. By 2010, 25 lakh cars were sold in India.

1991 was considered as a remarkable year for Indian economy when Indian economy is liberalized to the foreign investors. The first 3 foreign companies to come to India are - Ford, General Motors and Hyundai. In 1960, SIAM (Society of Indian Automobile Manufacturers) had just 8 members. 55 years later in 2015 that rose to 49.

Back in 1970, World car manufacturing was 29.42 million where as India's share was meagre 76409 (0.26%). In 2018, world manufacturing rose to 95.63 million whereas India's manufacturing was 5.17 million (5.41%). It means in past 50 years, World manufacturing grew 3.25 times whereas Indian manufacturing grew 67.66 times.

The foreign car and Motorbike makers with manufacturing plants in India are -

Hyundai - Chennai - Opened in 1996

Mercedes Benz (Daimler) - Pune - Opened in 2009

BMW - Chennai - Opened in 2007

Audi - Aurangabad - Opened in Sep 2007

Volkswagen - Total 5 factories as VW Group owns Audi, ŠKODA, Lamborghini, Bugatti and Porsche

Toyota - Bidadi (Karnataka)

Yamaha - Oragadam (near Chennai) and Faridabad

Honda - Ahmedabad, Manesar (Haryana), Narasapura (Karnataka)

Kawasaki - Pune - Opened in July 2017

ŠKODA - Pune, Aurangabad

Nissan - Renault - Oragadam (near Chennai) - Opened in 2010

FCA Group (owns Fiat, Chrysler, Jeep, Maserati) - Pune - Opened in 2007

Jaguar - LandRover - Pune - Opened in May 2011 (Owned by Tata Motors)

CITROËN - Tiruvallur (Tamil Nadu) - Opened in 2021

Ford - Chennai (1999) and Sanand (March 2015)

Isuzu - Sri City (Andhra Pradesh) - Opened in 2016

Kia - Sri City (Andhra Pradesh) - Opened in 2017

Today 45-50 lakh cars are produced in India each year. A big chunk of cars and 2 wheelers are also exported from India. The major foreign automobile makers that exported from India in FY 2020 are -

Hyundai - 1.69 lakh

Ford - 1.31 lakh

Maruti Suzuki - 1 lakh

Nissan - 79 thousand

General Motors - 70 thousand

Volkswagen - 55 thousand

Kia - 21 thousand

Renault - 16 thousand

Toyota - 12 thousand

Top exported cars from India are - Ford Ecosport, GM Beat, Hyundai Verna, Kia Seltos etc.

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