Car Articles

In 1942, Hindustan Motors (HM) set up India’s first car manufacturing plant and the Ambassador was born in 1949. Ambassador is remembered as the oldest car to come to India, but this is not true. While HM was busy manufacturing auto components and car parts, Premier Autoback mobile (PAL) was established in 1944 and they introduced the first Indian-manufactured car to India in 1946 called the Premier Padmini. Mahindra and Mahindra captured the SUV market with its rugged looking Willys Jeeps. The protectionist policies put into place immediately after Independence allowed only seven car dealers to operate in India in the early 1950s.

These policies saw slight relaxations in the 1980s and India’s car industry saw a major revival with foreign manufacturers and collaborators pouring in with car models that expanded the band width of choices. However, the government still remained protective of its indigenous industries and did not allow entry to those car models that would provide direct threat or competition to an established Indian company. This changed in early 1991 with the liberalization movement causing a sudden surge in competitors and manufacturers entering the market.