Indian automobile industry at cross roads

Sie sind hier: Homepage > Suche

Indian automobile industry at cross roads

Setty, P.

A commonly held tenet of economic development is that key to economic growth in any country lies in three key sectors: energy, communications and transport. Of these, transport is considered the most vital catalyst of economic change. The Indian automobile industry flourished with the protection of Government of India in every respect. The truck and the car industry did not have any competition for a long period. Customers had to wait for taking delivery of a car or a truck after booking for the same. Some time the waiting period was up to 24 to 36 months. Today, the scenario is different and the automobile sector has become highly market driven. The new industrial policy of 1991 gave a deathblow to the License Raj and hence a boost to the automobile industry. The national highway policy of 1997 will have a positive impact on the automobile industry. The Indian automobile market in general and passenger cars in particular have witnessed liberalization. Many multinationals like Daewoo, Peugeot, General Motors, Mercedes-Benz, Hyundai, Volvo and Fiat have entered into the market. Various companies are coming up with state-of-art models of vehicles. TELCO has diversified in passenger car segment with Indica. Despite the adverse trend in the growth of the industry, it is resolutely trying to meet the challenges.