INDIAN CAR HISTORY PART-I

The first motor car on the streets of India were seen in 1898. Mumbai had its first taxicabs in the early 1900. Then for the next fifty years, cars were imported to satisfy domestic demand. Many were Rolls Royce to fulfil the needs of the Indian royalty. Then India accounted for a big chunk of the British company’s cars and some of its all time classics (like the Hyderabad Pearl) were made on order placed by some Indian king. Between 1910 and 20's the automobile industry made a humble beginning by setting up assembly plants in Mumbai, Calcutta and Chennai. The import/assembly of vehicles grew consistently after the 1920's, crossing the 30,000 mark in 1930. But still only the extremely well heeled could afford a car.

Then in 1946, Premier Automobile Ltd (PAL) earned the distinction of manufacturing the first car in the country by assembling 'Dodge DeSoto' and 'Plymouth' cars at its Kurla plant. Soon it got into collaboration with Fiat and produced the PAL Padmini (more commonly known as just Fiat). This was meant to be the first common man’s car, though the weak economy just after independence meant that from royalty, cars came within reach of the rich, but still away from average Joe. The car continued till the late 80s n received a couple of updates, thereafter it died in the face of competition. But one place it is still popular, is as Mumbaiya taxis. Actually they r so popular that whenever u think of Bombay, they r bound to come in ur mind.

Another pre independence manufacturer was Hindustan Motors (HM), which started as a manufacturer of auto components in 1942 n graduated to manufacture cars in 1949. In 1957 it released its best selling model till date, the Ambassador. This vehicle was again meant for the masses and had very robust build. It went on to become the official carrier of India and to this day, anyone who is someone in a government office uses this as his official mode of transport. The list includes heads of institutions, military top brass, bearcats and above all, the Prime Minister of India!

In 1952, the GOI set up a tariff commission to devise regulations to develop an indigenous automobile industry in the country. After the commission submitted its recommendations, the GOI asked assembly plants, which did not have plans to set up manufacturing facilities, to shut operations. As a result General Motors, Ford and other assemblers closed operations in the country. The year was 1954 and this decision of the government marked a turning point in the history of the Indian car industry. The GOI also had a say in what type of vehicle each manufacturer should make. Therefore, each product was safely cocooned in its own segment with no fears of any impending competition. Also, no new entrant was allowed even though they had plans of a full-fledged manufacturing program. The restrictive set of policies was chiefly aimed at building an indigenous auto industry. However, the restrictions on foreign collaborations led to limitations on import of technology through technical agreements.

The other control imposed on carmakers related to production capacity and distribution. The GOI control even extended to fixation of prices for cars and dealer commissions. Simply put, the three decades following the establishment of the passenger car industry in India and leading unto the early 1980s, proved to be the 'dark ages' for the consumer, as his choice throughout this period was limited to two models viz Ambassador and Padmini.

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