In the early 80's, a series of liberal policy changes were announced marking another turning point for the automobile industry. The GOI entered the car business, with a 74% stake in Maruti Udyog Ltd (MUL), the joint venture with Suzuki Motors Ltd of Japan. The company entered in 1983 with a so-called "peoples" car and a more favourable policy framework.
MUL introduced 'Maruti 800' in 1983 providing a complete facelift to the Indian car industry. The car was launched as a "people’s car" with a price tag of Rs40,000. This changed the industry's profile dramatically. This car, which had a 800cc engine and the barest minimum that could make a car just about comfortable, holds the honour of actually bringing car to the common man in India and till not so long ago was the single largest selling car here. Boosted by this, second highest growth was recorded in 1985 at 42%yoy when Maruti had entered the market. In the very same year, the GOI announced its famous broad banding policy which gave new licenses to broad groups of automotive products like two and four-wheeled vehicles. Though a liberal move, the licensing system was still very much intact.
The de-licensing of auto industry in 1993 opened the gates to a virtual flood of international auto makers into the country with an idea to tap the large population base of 950mn people. As a result we saw many new manufacturers entering the market. First of the German giants to enter the country was Mercedes. With its exorbitant prices and impeccable quality, it soon went on to be looked upon as the pinnacle of automobile here, which was meant for only the select few to relish. Also came Peugeot, but failed miserably. Well, actually speaking, there was nothing wrong with the car as such, only that the market had not matured enough for an expensive (Rs. 5lacs was a huge sum then) sedan.
Another revolution was brought by 2 Korean and one local manufacturer. These were Hyundai, Daewoo and our very own Tata Motors (then TELCO). Hyundai’s Santro n Daewoo’s Matiz were a run away success. Though the Santro is still going great guns (also being exported out of here), Matiz went out with the fall of Daewoo in Korea (though its models now launched under the Chevrolet name by GM are doing pretty well). Tata has the honour of launching the first indigenous car, named Indica. This robust, low maintenance car, is today the best seller in the country.
Hyundai though, grew in leaps and bounds n today proudly stands as the second largest car manufacturer in the country, only behind Maruti Suzuki. This success can be attributed to the company’s constant upgrades, new launches and above all its endeavour to bring the latest technology into the country (long before other manufacturers even thought of it) and at a quite affordable price too. It pioneered technologies like CRDI, ABS, TCS, auto boxes etc. (of course not considering the Mercs who already had it since quite some time, but then how many people could own them?).
Since then the car scene seems to have gone into overdrive. The lifting of quantitative restrictions on imports by the recent policy is expected to add up to the flurry of foreign cars in to the country. Many companies have entered the car manufacturing sector, to tap the middle and premium end of car industry. The new entrants GM, Ford, Mitsubishi, Honda, Toyota, and Skoda entered the mid-sized car segment and Audi, Bentley, Volkswagen; Porsche is in the premium end of market. Though the exclusive brands r still fringe players and only few of them have assembly plants for CKDs, most taking the CBU route. But the mid size segment players have full fledged manufacturing plants here, n some even cater for exports.
As a result of all this, today we have cars ranging from Rs.2lac till Rs.5crore and cover all types of styles like hatchback, sedan, coupe, convertible, SUV, MUV etc. so something for everyone’s need, and considering the current economy growth trend (touch wood!) the only way from here is up. Now that certainly is music to everyone’s ears.
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