But the origins of this industry were rather humble and 60 years ago, as the country was coming to terms with its own independence, automobiles was a non-existent industry and nobody was thinking of changing that. The early years were the dark ages and extended for as long as two decades, 1947-1970 — for which there is record of production.

In the passenger car segment it was primarily the story of three companies — Hindustan Motors (the oldest surviving car-maker), Premier Auto and Standard Motor Products — all of which had a colonial hangover. While Hindustan Motor’s Ambassador, which was the first car to be manufactured in India in 1950, was based on UK’s Morris Oxford, Premier Auto had an association with Chrysler and then with the Italian major Fiat Spa. Standard was a subsidiary of UK’s Standard Motor Company, which entered India in 1948.

In the pre-1970 years cars were considered a luxury, manufacturing was licenced, expansion restricted and location of plants as well as size of vehicles determined by the government to discourage competition. Quantitative restrictions on imports and high duties and taxes were the order of the day and Tata, HM, Bajaj and PAL were market leaders.

The evolution started in the following decades and though the policies remained largely the same between 1970-80, new entrants emerged in the two wheeler segment. However, the first major jump came in the mid-1980s with the entry of the Japanese with Maruti Udyog (collaboration with Suzuki), Hero Honda, Swaraj Mazda and Escorts Yamaha.

The trend of new entrants and increasing production was accentuated in the 1990s as duties came down in accordance with the demands of the market. While Maruti extended its stranglehold in the car market, the world started looking at India as a major emerging market and global bigwigs like Ford, DCM Toyota, Diamler Chrysler, Hyundai, GM, Skoda and Honda threw their hats in the ring.

This decade also saw a paradigm shift in trade as the industry quickly changed from a producer’s to a buyer’s market and auto finance took roots in the industry. The boom also fuelled environment concerns and first steps on pollution were taken. Those like Standard and PAL who could not respond to the changing needs of the market perished and others quickly took their place.

The next big leap in the industry took place in the early years of this century and 2001 marked the beginning of landmark policy reforms in the sector. Quantitative restrictions were removed, 100 per cent FDI was permitted through the automatic route while conditions like foreign exchange neutralisation and export obligations were removed. As a result the industry got a further push and output doubled.

Fresh investments led to increased competition and as small cars became the lifeline of Indian consumers, Maruti was challenged by Tata and Hyundai. The two wheeler segment saw an even more dramatic turn of events as the market almost overnight switched from scooters to motorcycles. The reigning champion Bajaj was suddenly under pressure and Hero Honda emerged as the largest motorcycle manufacturer in the world. In commercial vehicles homegrown Tata Motors consolidated its position with huge investments and a slew of products.

The impact of the 2001 reforms has been profound and still being felt across all segments. In the last five years, annual growth in the passenger vehicle segment has been by 15 per cent, commercial vehicles 26 per cent, two wheelers 13 per cent and three wheelers 15 per cent. The industry expected to attract investment worth $35-40 billion by 2016. While policies for turning India into a hub for small cars have been drafted, just how far the industry is able to leverage these policies and global monies into servicing that aspiration remains to be seen.

Mile stones covered:

1942 HM set up in 1942. Ambassador — the first car to be manufactured in India — rolls out in 1948

1944 Premier Automobiles set up with Chrysler rolls out first car in 1947

1950 Standard enters India, rolls out Vanguard in 1950

Pre-1970 Cars were luxury, manufacturing licenced, expansion restricted and industry strictly under government control. Size of industry was miniscule and car-making was an unprofitable business

1970-80 Two wheeler segments witnesses first signs of activity. Kinetic, LML start ops

1980-90 Japanese enter India with a flurry of JVs like Maruti Suzuki, Hero Honda etc

1990-2000 International players GM, Ford, Honda, Skoda, Hyundai and DC enter India.

2000-06 Reforms in 2001 sees exponential rise. Domestic sales on a high and exports begin. Within 60 years India on the verge of becoming the hub for small cars