Although Hindustan Motors and Premier Automobiles were established prior to independence, the real history of the Indian automobile industry begins with the Tariff Commission Report of 1953, when firms without a phased manufacturing program were asked to withdraw from India. By 1965, there were seven firms manufacturing commercial vehicles, four of which also produced passenger cars/ jeeps. In 1981, the government approved the entry of four new firms (with Japanese collaboration) into the market for light commercial vehicles. This was followed by further liberalization in industrial policies, viz, broad-banding, exemption from the provisions of section 21 and 22 of the MRTP Act, and the announcement of minimum economic scales.
Since the very beginning, the government has placed more emphasis on commercial rather than private transport vehicles. This is evident in the successive Tariff Commission Reports as well as in the inclusion of commercial (but not private) vehicles in the list of 'Appendix I' industries in 1973. The industry has been protected via quantitative restrictions, a virtual ban on import of built-up vehicles, and high rates of duty.
Given its role as a leading sector in economic development, the industry's average growth rate of 4 percent over the period 1950-85 would seem to be inadequate. The recessionary period of 1965-77 was followed by a boom in 1978-81. Since then, production has stagnated and the euphoria generated by the easing of restraints has been replaced by pessimism resulting from over-crowding and over-capacity, an unanticipated slow-down in growth of demand, an unforeseen rise in the value of the yen, and ambiguity in government policy.

Although Hindustan Motors and Premier Automobiles were established prior to independence, the real history of the Indian automobile industry begins with the Tariff Commission Report of 1953, when firms without a phased manufacturing program were asked to withdraw from India. By 1965, there were seven firms manufacturing commercial vehicles, four of which also produced passenger cars/ jeeps. In 1981, the government approved the entry of four new firms (with Japanese collaboration) into the market for light commercial vehicles. This was followed by further liberalization in industrial policies, viz, broad-banding, exemption from the provisions of section 21 and 22 of the MRTP Act, and the announcement of minimum economic scales.
Since the very beginning, the government has placed more emphasis on commercial rather than private transport vehicles. This is evident in the successive Tariff Commission Reports as well as in the inclusion of commercial (but not private) vehicles in the list of 'Appendix I' industries in 1973. The industry has been protected via quantitative restrictions, a virtual ban on import of built-up vehicles, and high rates of duty.
Given its role as a leading sector in economic development, the industry's average growth rate of 4 percent over the period 1950-85 would seem to be inadequate. The recessionary period of 1965-77 was followed by a boom in 1978-81. Since then, production has stagnated and the euphoria generated by the easing of restraints has been replaced by pessimism resulting from over-crowding and over-capacity, an unanticipated slow-down in growth of demand, an unforeseen rise in the value of the yen, and ambiguity in government policy.

Although Hindustan Motors and Premier Automobiles were established prior to independence, the real history of the Indian automobile industry begins with the Tariff Commission Report of 1953, when firms without a phased manufacturing program were asked to withdraw from India. By 1965, there were seven firms manufacturing commercial vehicles, four of which also produced passenger cars/ jeeps. In 1981, the government approved the entry of four new firms (with Japanese collaboration) into the market for light commercial vehicles. This was followed by further liberalization in industrial policies, viz, broad-banding, exemption from the provisions of section 21 and 22 of the MRTP Act, and the announcement of minimum economic scales.
Since the very beginning, the government has placed more emphasis on commercial rather than private transport vehicles. This is evident in the successive Tariff Commission Reports as well as in the inclusion of commercial (but not private) vehicles in the list of 'Appendix I' industries in 1973. The industry has been protected via quantitative restrictions, a virtual ban on import of built-up vehicles, and high rates of duty.
Given its role as a leading sector in economic development, the industry's average growth rate of 4 percent over the period 1950-85 would seem to be inadequate. The recessionary period of 1965-77 was followed by a boom in 1978-81. Since then, production has stagnated and the euphoria generated by the easing of restraints has been replaced by pessimism resulting from over-crowding and over-capacity, an unanticipated slow-down in growth of demand, an unforeseen rise in the value of the yen, and ambiguity in government policy.

Although Hindustan Motors and Premier Automobiles were established prior to independence, the real history of the Indian automobile industry begins with the Tariff Commission Report of 1953, when firms without a phased manufacturing program were asked to withdraw from India. By 1965, there were seven firms manufacturing commercial vehicles, four of which also produced passenger cars/ jeeps. In 1981, the government approved the entry of four new firms (with Japanese collaboration) into the market for light commercial vehicles. This was followed by further liberalization in industrial policies, viz, broad-banding, exemption from the provisions of section 21 and 22 of the MRTP Act, and the announcement of minimum economic scales.
Since the very beginning, the government has placed more emphasis on commercial rather than private transport vehicles. This is evident in the successive Tariff Commission Reports as well as in the inclusion of commercial (but not private) vehicles in the list of 'Appendix I' industries in 1973. The industry has been protected via quantitative restrictions, a virtual ban on import of built-up vehicles, and high rates of duty.
Given its role as a leading sector in economic development, the industry's average growth rate of 4 percent over the period 1950-85 would seem to be inadequate. The recessionary period of 1965-77 was followed by a boom in 1978-81. Since then, production has stagnated and the euphoria generated by the easing of restraints has been replaced by pessimism resulting from over-crowding and over-capacity, an unanticipated slow-down in growth of demand, an unforeseen rise in the value of the yen, and ambiguity in government policy.

Although Hindustan Motors and Premier Automobiles were established prior to independence, the real history of the Indian automobile industry begins with the Tariff Commission Report of 1953, when firms without a phased manufacturing program were asked to withdraw from India. By 1965, there were seven firms manufacturing commercial vehicles, four of which also produced passenger cars/ jeeps. In 1981, the government approved the entry of four new firms (with Japanese collaboration) into the market for light commercial vehicles. This was followed by further liberalization in industrial policies, viz, broad-banding, exemption from the provisions of section 21 and 22 of the MRTP Act, and the announcement of minimum economic scales.
Since the very beginning, the government has placed more emphasis on commercial rather than private transport vehicles. This is evident in the successive Tariff Commission Reports as well as in the inclusion of commercial (but not private) vehicles in the list of 'Appendix I' industries in 1973. The industry has been protected via quantitative restrictions, a virtual ban on import of built-up vehicles, and high rates of duty.
Given its role as a leading sector in economic development, the industry's average growth rate of 4 percent over the period 1950-85 would seem to be inadequate. The recessionary period of 1965-77 was followed by a boom in 1978-81. Since then, production has stagnated and the euphoria generated by the easing of restraints has been replaced by pessimism resulting from over-crowding and over-capacity, an unanticipated slow-down in growth of demand, an unforeseen rise in the value of the yen, and ambiguity in government policy.

Although Hindustan Motors and Premier Automobiles were established prior to independence, the real history of the Indian automobile industry begins with the Tariff Commission Report of 1953, when firms without a phased manufacturing program were asked to withdraw from India. By 1965, there were seven firms manufacturing commercial vehicles, four of which also produced passenger cars/ jeeps. In 1981, the government approved the entry of four new firms (with Japanese collaboration) into the market for light commercial vehicles. This was followed by further liberalization in industrial policies, viz, broad-banding, exemption from the provisions of section 21 and 22 of the MRTP Act, and the announcement of minimum economic scales.
Since the very beginning, the government has placed more emphasis on commercial rather than private transport vehicles. This is evident in the successive Tariff Commission Reports as well as in the inclusion of commercial (but not private) vehicles in the list of 'Appendix I' industries in 1973. The industry has been protected via quantitative restrictions, a virtual ban on import of built-up vehicles, and high rates of duty.
Given its role as a leading sector in economic development, the industry's average growth rate of 4 percent over the period 1950-85 would seem to be inadequate. The recessionary period of 1965-77 was followed by a boom in 1978-81. Since then, production has stagnated and the euphoria generated by the easing of restraints has been replaced by pessimism resulting from over-crowding and over-capacity, an unanticipated slow-down in growth of demand, an unforeseen rise in the value of the yen, and ambiguity in government policy.

Although Hindustan Motors and Premier Automobiles were established prior to independence, the real history of the Indian automobile industry begins with the Tariff Commission Report of 1953, when firms without a phased manufacturing program were asked to withdraw from India. By 1965, there were seven firms manufacturing commercial vehicles, four of which also produced passenger cars/ jeeps. In 1981, the government approved the entry of four new firms (with Japanese collaboration) into the market for light commercial vehicles. This was followed by further liberalization in industrial policies, viz, broad-banding, exemption from the provisions of section 21 and 22 of the MRTP Act, and the announcement of minimum economic scales.
Since the very beginning, the government has placed more emphasis on commercial rather than private transport vehicles. This is evident in the successive Tariff Commission Reports as well as in the inclusion of commercial (but not private) vehicles in the list of 'Appendix I' industries in 1973. The industry has been protected via quantitative restrictions, a virtual ban on import of built-up vehicles, and high rates of duty.
Given its role as a leading sector in economic development, the industry's average growth rate of 4 percent over the period 1950-85 would seem to be inadequate. The recessionary period of 1965-77 was followed by a boom in 1978-81. Since then, production has stagnated and the euphoria generated by the easing of restraints has been replaced by pessimism resulting from over-crowding and over-capacity, an unanticipated slow-down in growth of demand, an unforeseen rise in the value of the yen, and ambiguity in government policy.

Although Hindustan Motors and Premier Automobiles were established prior to independence, the real history of the Indian automobile industry begins with the Tariff Commission Report of 1953, when firms without a phased manufacturing program were asked to withdraw from India. By 1965, there were seven firms manufacturing commercial vehicles, four of which also produced passenger cars/ jeeps. In 1981, the government approved the entry of four new firms (with Japanese collaboration) into the market for light commercial vehicles. This was followed by further liberalization in industrial policies, viz, broad-banding, exemption from the provisions of section 21 and 22 of the MRTP Act, and the announcement of minimum economic scales.
Since the very beginning, the government has placed more emphasis on commercial rather than private transport vehicles. This is evident in the successive Tariff Commission Reports as well as in the inclusion of commercial (but not private) vehicles in the list of 'Appendix I' industries in 1973. The industry has been protected via quantitative restrictions, a virtual ban on import of built-up vehicles, and high rates of duty.
Given its role as a leading sector in economic development, the industry's average growth rate of 4 percent over the period 1950-85 would seem to be inadequate. The recessionary period of 1965-77 was followed by a boom in 1978-81. Since then, production has stagnated and the euphoria generated by the easing of restraints has been replaced by pessimism resulting from over-crowding and over-capacity, an unanticipated slow-down in growth of demand, an unforeseen rise in the value of the yen, and ambiguity in government policy.