Evolution of Automobile industry in India

Introduction:-

Did you know when an Indian vehicle flew on road ?Do you know who brought a first vehicle in India? Do you know the number of vehicles used ?What is the norms that an industry is taking? What are the emission plans in India? Let us dive in,

India has the third largest road network in the world, the total number of vehicles in the  year 2017 stood at 253 million and present now the number is  still counting  and now it is 25 million in the span of 3yeras. Can you see the profit and the rise in number of vehicles is approximately 3.5millions,that means approximately  60% of people are having vehicles .Let us know  about the history of the automobile sector in India  the rise and fall of it?

List of the contents:-

1.History

2.Economic Growth

3.Investments

4.What are government Initiatives

5.Environmental norms

6.Evolution of diesel engine

7.Ethical Practices

8.Present situation

History:-

Did you know when an Indian vehicle flew on road ?Do you know who brought a first vehicle inn India? The first car that rode on Indian was a Romany ads in the year 1897 and the first Indian to own a car was Jamshedji Tata in 1901

After the independence, the India government helps the industry to manufacturing the vehicles in India. Till then, India has been importing the cars from other country’s directly but the situation changed after 1945.

Finally the automobile industry came into practice in the year 1952 ,when the government appoints a tariff commission to bring control over the industry. The year 1952 also marked as the introduction of passenger cars in the country. Manufacturers like Hindustan Motors, Premier Automobiles and Standard Motors came into the limelight.

Even the SUV’s started being manufactured in India by  Mahindra, Bajaj, Standard Motors, etc. Medium sized vehicles are also being manufactured in India by 7 industries like Ashok Motors, Simpsons and Co., Premier Motors and more.  Two-wheeler vehicles like scooters, motor bikes were manufactured by Bajaj Auto, Escorts Group, Royal Enfield, Automobiles Product of India, etc.

Economic Growth:-

The industry also helped finance and insurance sector. In the meanwhile, the vehicle insurance act was also proposed by the government and monitored by  Motor Vehicles Act, 1988.It gives insurance to the vehicles that flew on road.

·        The 2-wheeler contribute to 79.17% of the total production in the country

·        India has a large number  of skilled labours 

·        By 2020, India’s shares in the global passenger vehicle market is expected to be 8% .

Government Initiatives:-

The Government of India encourages foreign investment in the automobile industry and  allowed 100 per cent foreign direct investment (FDI) under the automatic route.

Some of the recent initiatives taken by the Government of India are –

• Under Union Budget 2019-20, the Government announced to provide additional income tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs.
• Under NATRiP, the Government of India is planning to set up R&D centres at a total cost of US$ 388.5 million 
• The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for introduction of EVs in their public transport systems under the FAME (Faster Adoption and Manufacturing of  Electric Vehicles in India) scheme. 
• In February 2019, the Government of India approved FAME-II scheme with a fund requirement of Rs 10,000 crore  for the year 2020-2022.    

Investments:-

The automobile industry has attracted Foreign Direct Investment (FDI) worth US$ 24.21 billion between April 2000 and March 2020, according to the data released by Department for Promotion of Industry and Internal Trade (DPIIT).

Some of the recent/planned investments and developments in the automobile sector in India are as follows:

• In April 2020, TVS Motor Company bought UK’s iconic sporting motorcycle brand, Norton, for a sum of about Rs 153 crore (US$ 21.89 million), making its entry into the top end (above 850cc) segment of the superbike market.
• In January 2020, Tata AutoComp Systems, the auto-components arm of Tata Group entered a joint venture with Beijing-based Prestolite Electric to enter the electric vehicle (EV) components market.
• In December 2019, Morris Garages (MG), a British automobile brand, announced plans to invest an additional Rs 3,000 crore (US$ 429.25 million) in India.
• Audi India planned to launch nine all-new models including Sedans and SUVs along with futuristic E-tron EV by end of 2019.
• MG Motor India planned to launch MG ZS EV electric SUV in early 2020 and have plans to launch affordable EV in the next 3-4 years.
• BYD-Olectra, Tata Motors and Ashok Leyland will supply 5,500 electric buses for different state departments.

 Emission-Norms:-

Evolution of diesel engine:-

Ethical –Practices:-

The companies are doing so many activities like giving education to poor children. By giving their employees’ health benefits , insurance, etc .By donating money towards charity for social cause and doing campaigns’ like medial camp, by trying to decrease the amount of CFC’S(chloro floro carbons ) to the environment. By implementing air bags in the vehicle is also comes into CSR practices. These are some of the ethical practices that companies do now a days to increase their reputation ,which are the duties of the companies to perform for a long term.

Present Situation:-

India  is one of the largest manufacturing industries in India by 2021 India will emerge as the 3^rd largest manufacturing industry in the world. It became the fifth largest auto market in 2019 with a sale  of 3.81 million units. It is the seventh largest manufacturer of commercial vehicles in 2019

India is also a famous auto exporter and has strong export growth in the near future. In addition to this several schemes are being taken by Government of India and some automobile companies by which Indian market is expected to make ,India as a leader in the two-wheeler and four-wheeler market in the world by 2020.But due to the present situation(COVID-19) it will take some more time for achieving the goal. But it will definitely going to  happen in future.