The growth of Indian automotive industry from the pre-independence period till date shows distinct phases. It all started in 1940s: the embryonic automotive industry emerged in pre-independent India. Despite the sluggish growth of the economy during 1950-1980, the automotive industry began to witness a relatively fast growth during 1970-1980 mainly due to the leading production role of Telco, Ashok Leyland, Mahindra & Mahindra, Hindustan Motors, Premier Automobiles, and Bajaj Auto. The growing demand for more cars since 1980s has changed the whole growth scenario. During 1980-1985 the first major change was sighted as Japanese manufacturers began to build car and commercial vehicle factories in India in partnership with Indian firms. At the same time, component manufacturers also entered the joint-venture scenario with European and US firms. Between the years 1985-1990 a noticeable change took place in the Indian automotive industry. The industry marked the entry of Maruti Udyog into the production of passenger cars: persistent high import tariffs were relaxed to a great extent, and with lesser import cost adding to the overhead production cost, higher productions were possible leading to the start of growing exports.
Technical Change, Indian Auto Components. Report To NISTADS, Department Of Science And Technology, Government Of