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

... contd.