India @75: Journey of auto industry

Two Indo-Japanese alliances paved the way for automobile revolution in the country

- ARSHAD KHAN

FOR the first 35 years of Independence, there was barely any significant progress made in India's automobile sector. Owning to India's first Prime Minister Jawaharlal Nehur's closed economic policies, India's automobile industry moved at a snail pace and stood nowhere close to giant strides made by the American, the Japanese and the German automakers.

The indigenous four-wheeler industry was kickstarted in 1940s with the establishment of Hindustan Motors and Premier Automobiles Limited who garnered most of the market share till 1970s, along with minor stake held by Telco, Ashok Leyland and Mahindra & Mahindra (M&M).

It was only in the early 1980s that the Government of India realised the need to establish a robust domestic industry to cater to the growing demand for efficient machines and allowed foreign carmakers' entry via minority shareholding with a local partner.

The Indira Gandhi-led government in February 1981 incorporated Maruti Udyog Limited, a brainchild of her late son Sanjay Gandhi, under the provisions of the Indian companies act, 1956. The government in the early 1980s invited foreign automakers to collaborate with this newly-formed public sector enterprise.