Phases of the History of India

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HISTORY OF ORIGIN
The history can be divided into four phases:

1898 to 1957

The first motorcar on the streets of India was seen in 1898. In 1903, an American company began a public taxi service with a fleet of 50 cars in Mumbai. For about 50 years after the first car arrived in India, cars were directly imported until foreign manufacturers began to realize the vast potential India had with its vast distances and large population. Before world war-1, around 4,000 motor vehicles were imported. During the wars, a start for an automobile industry was made by establishing assembly plants in Mumbai, Calcutta, and Chennai. The import / assembly of motor vehicles grew manifold post 1920s, crossing 30,000 units by 1930. It was towards the end of the war that the importance of establishing an indigenous automobile industry in India was realized when Premier Automobiles Ltd. (PAL) and Hindustan Motors (HM) set up factories in the mid 40s for progressive manufacture rather than assembly from imported components. At the time of independence, The PAL and HM focused on passenger cars, whereas the Mahindra brothers started Mahindra & Mahindra in 1945 with the objective of making utility vehicles. After Independence, Automobiles was defined as the industry of huge importance in India hence steps were taken for its control and regulation by the government. The starters, were restricted from importing completely built-up units, if not completely banned. In 1952 the government appointed the first Tariff Commission. As per suggestion by the Tariff commission, the government terminated the activities of assemblers that did not have any manufacturing program. It was also decided to keep the number of models selected for production to a realistic min...

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...try of the world. The next couple of years were a boom and led to unprecedented growth in the industry which forced assembly lines to work overtime to meet the demand. Dazzled by the potential of India's 100 million odd people, car companies planned ambitious capacities. However, India was a much tougher market due to huge competition from Indian firm Maruti on price and sheer value for money. This forced most of the new entrants into the mid sized luxury segment. With cars costing from five lakh to eight lakh, only few people can afford these cars. Daewoo, Hyundai, Mitsubishi, Ford, Peugeot, GM Opel, Mercedes Benz, Honda are all saddled with excess capacities.
Manufacturers are rethinking their strategies and rationalizing capacities to cope with the situation. Many are still optimistic about mid - sized segment and expect it to have the maximum growth potential.

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