Automobile Manufacturers India – A Flourishing Industry

Indigenous Automobile Manufacturing

The automobile manufacturing industry is one of the rapidly growing and the largest manufacturing industries in the country. India presently holds the coveted top ranking throughout the world in indigenous manufacturing of automobiles. It was during the mid 1940’s that the first locally assembled Willys Jeep by the Mahindra Brothers became one of the major automobiles to race on the India roads. While the Jeep became one of the famous vehicles in the country, this was followed by the sedan cars manufactured by Hindustan Motors with their cars well known as “Ambassador” cars. Fiat, Italy entered the automobile market with their Fiat cars which came to be known as Premier Padmini cars. These cars enjoyed immense popularity due to its ease of maneuverability and its light weight. These cars soon became a symbol of the elitists during the 1970’s. The automobile manufacturers India is represented by the phenomenal growth of the automobiles and commercial vehicles manufacturing in the country.

The Foreign Players

The 1980’s witnessed a remarkable surge in the four-wheeler and commercial vehicle production with foreign manufacturers making a beeline towards India. During the early ‘80’s Suzuki of Japan entered into a joint venture with Maruti Udyog Ltd. and set its manufacturing plant in the small and sleepy town of Gurgaon in Haryana rolling out their first people’s car Maruti Suzuki 800 series at an astoundingly affordable price. With the success of the Maruti Suzuki, several foreign players such as, Mercedes, Renault, Mitsubishi, Volvo, BMW, Audi, Hyundai, Volkswagen, General Motors and Skoda entered into the Indian automobile manufacturing industry. One of the major reasons for this transformation in the automobile industry was that India is a labor intensive country and the raw materials and labor come in at a comparably cheaper rate with other countries the world over.

Ancillary Industry

The manufacturing of the indigenous cars led to the widespread manufacturing of auto parts in the country. This led to a large number auto parts manufacturers entering this vital manufacturing industry. One of the fads that car owners have is to spend lavishly on auto accessories. There are several auto accessories manufacturers in the country that has catered to the demands of countless car owners.


India has turned out to be the largest exporter of indigenously manufactured cars to several developed countries which has given an impetus to automobile exporters India who have diversified in to the export market. Similarly, there is a wide and open market for auto accessories in the international market with the auto accessories exporters spreading across the country.