AUTOMOBILE INDUSTRY

Automobile indusry in india is one of the largest in the world and one of the fastest growing globally. India manufactures over 11 million vehicles (including 2 wheeled and 4 wheeled) and exports about 1.5 million every year. By 2050, India is expected to top the world in cars number with 600 million on the nation’s roads.

The automobile industry of India made a steady progress after independence. It was in 1947 when the Premier Automobiles Ltd. was established at Kurla (Mumbai). In 1948, the Hindustan Motors Ltd. Uttarapara was established near Kolkata. Within a short period of about fifty years, automobile industry in India has made a tremendous progress. At present, there are 17 manufacturers of passenger cars, 9 manufacturers of commercial vehicles, 16 producers of two and three wheelers and 14 producers of tractors, besides 5 manufacturers of engines. In 2010- ] 1, India produced about 3 million passenger vehicle, 7.5 lakh commercial vehicles, 8 lakh three wheelers, 13.38 million two wheelers. The percentage growth rate in 2010-11 was 27.45. (India 2012, p. 704)

The automobile industry was delicensed in July 1991 with the announcement of the New Industrial Policy. The passenger car was, however, delicensed in 1993. At present 100% Foreign Direct Investment (FDI) is permissible in automobile industry. The auto industry directly or indirectly employ 12.5 million people and contributes 5 per cent of national GDP (India 2012, p. 704).

The automobile industry is mainly located near the iron and steel producing centres as steel is the basic raw material used in the industry. The automobile industry is also located near the markets and the seaports. Some of the automobile industries have been located in the under-developed areas of isolation and relative isolation (Fig. 11.12).

Fig. 11.12 Automobile Industry

The main automobile producing centres are: Chennai, Delhi, Gurgaon, Jabalpur, Jamshedpur, Kolkata, NOIDA (U.P.) and Mumbai. Motorcycles are produced at Faridabad and Mysore. Scooters are manufactured at Akurdi (near Pune), Lucknow, Odhav (near Ahmedabad), Panki (near Kanpur), and Satara in Maharashtra.

The commercial vehicles are produced by Tata Engineering and Locomotive Co. (TELCO). It produces over 70 per cent of the total commercial vehicles. Its four plants are located at Hyderabad, Pithampur (Madhya Pradesh), Rupnagar (Punjab), Surajpur (NOIDA—LJttar Pradesh). The Premier Automobiles and Mahindra and Mahindra are located at Mumbai; Ashok Leyland Ltd. and Standard Motors at Chennai; Hindustan Motors Ltd. at Kolkata, and Bajaj Tempo Ltd. at Pune. Moreover, Shaktiman Trucks are manufactured under the Ministry of Defence and Nissan Jeeps at Jabalpur in collaboration with the Nissan Company of Japan.

Table 11.7 Production of Vehicles in 2005-06

Source: India, 2007, pp.550-551.