Phases of the History of India Essay

Decent Essays
The history can be divided into four phases:

1898 to 1957

The first motorcar on the streets of India was seen in 1898. In 1903, an American company began a public taxi service with a fleet of 50 cars in Mumbai. For about 50 years after the first car arrived in India, cars were directly imported until foreign manufacturers began to realize the vast potential India had with its vast distances and large population. Before world war-1, around 4,000 motor vehicles were imported. During the wars, a start for an automobile industry was made by establishing assembly plants in Mumbai, Calcutta, and Chennai. The import / assembly of motor vehicles grew manifold post 1920s, crossing 30,000 units by 1930. It was towards the end of
…show more content…
There were three categories of passenger cars, three medium trucks and one heavy truck. Each product existed within its own private segment and there was never any fear of competition.


From 1954 to 1964 the local manufacturers focussed more on imported parts and indigenization. Until 1968, foreign collaborations with equity participation were permitted. But then Mudaliar Committee came into action to avoid the criticism of auto industry being heavily dependent on foreign technology and collaborations. This was a tough period for passenger car makers whose elitist products came under more and more controls due to the changes in foreign collaboration policies. The control and reduction in imports led to more of local manufacturing that led to a huge decline in the quality of the cars. The failure rate of components saw an all time low. The other control imposed on carmakers was on capacity and distribution. But more than capacity (which actually exceeded the normal limit), the price control seriously affected the carmakers, where Govt. fixed the prices, even the dealer commission. In 1969,Car makers approached the Supreme Court as their bottom line was at stake, which led to the rise in car prices and also commissions. But the complete eradication of price control occured in 1985.The three decades following the establishment of the passenger car industry lead to the car ownership being a bitter experience to customer due to the shabby quality and poor
Get Access