It is an assembly industry. The industry basically depends upon iron and steel and many other materials for assembly and trimming. These materials are manufactured in different factories which are often widely scattered.
The industry manufactures motorcycles, scooters, three wheelers, cars, buses, trucks, tractors, jeeps, military vehicles etc.
The industry has witnessed rapid strides with time. This industry has been revolutionized in matters of model, shape, speed, carrying capacity, amenities etc. Speedy luxurious bullet proof cars with communication facilities have entered the market.
A large number of companies are manufacturing different types of automobiles both for civil and defence uses. Manufacturing of cars for racing competitions are a special creation of the industry.
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The industry has advanced on account of certain factors. These are:
1. Development of iron and steel and other industries.
2. Improvement in the standard of living of the people.
3. Discovery, mining and availability of oil.
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4. Availability of capital.
5. Development of science and technology. Cordial world relations have encouraged international trade in automobiles.
6. Availability of skilled labour.
7. Need for bridging distances between the countryside and urban centres, increase in passenger traffic, need for quick transport of perishable commodities like milk, vegetables etc., transportation of goods from the areas of production to the areas of consumption, transportation of different types of cargo from one region to another, etc. have caused great demand for different types of automobiles ranging from motor cycles, scooters, cars, buses, tempos to heavy trucks.
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Need for military preparedness has also helped in accelerating demand for different types of vehicles or automobiles.
8. General increase in the world population has also played an important role in creating demand for automobiles the entire world over.
Automobile industry is a highly specialized, technical, sophisticated and expensive industry. Since the sizes, models and purposes of automobiles keep on changing with time and purchasing power, so does the industry. It has to cater to the demand of the people.
Automobile industry is young in India. Its origin dates back to 1928. General Motors Ltd. India in 1928, made the start of automobile industry at Mumbai. In 1930, Ford Motor Co. (India) undertook to assemble cars and trucks in Chennai.
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The Premier Automobile Ltd. was set up at Kurla (Mumbai) in 1947. The Hindustan Motors Ltd. at Uttarpara (Kolkata) started working in 1948. Presently, there exist a number of centres engaged in manufacturing a variety of two, three and four wheeler vehicles like motor cycles, cars, three wheelers, jeeps, trucks, commercial vehicles, buses and different type and purpose vehicles for Army, Navy and Air force and other para military forces.
The industry has made rapid strides in India due to :
(ii) Development of iron and steel and other industries.
(iii) Increase in the purchasing power of a section of Indian population thus creating demand for the vehicles.
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(iii) Availability of plenty of skilled labour.
(iv) Demand for trucks, tankers, cars, buses, commerical vehicles.
Pune, Mumbai, Chennai, Jamshedpur, Jabalpur, Kolkata, Gurgaon are the main automobile manufacturing centres. Faridabad is known for the production of motorcycles.
Lucknow, Ahmedabad, Kanpur produce scooters.
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Hyderabad, Pitampura (M.P), Ropar (Pb.), Suraypura in Ghaziabad district of UP manufactures light vehicles.
Premier Automobiles, Ashoka Leyland, Standard Motors, Hindustan Motors, DCM, Bajaj Tempo. TELCO, MUL, Mahindra and Mahindra are leading automobile concerns in India.
Recently, new car models have entered the Indian market.
After Maruti (Japan) 1983, came Daewoo of Korea (1995). It was followed by General Motors and Ford of the USA, Mercedes Benz from Germany, Peugeot of France, and Uno of Italy. The other car models running on the roads include BMW, Honda, Hyundai, Santro, Indica etc.
(i) In India, trucks are manufactured at Jamshedpur, Jabalpur (Trucks for the defence forces).
(ii) Buses: Chennai
(iii) Jeeps: Mumbai
(iv) Cars: Mumbai, Kolkata, Gurgaon.
(v) Scooters, Mopeds, Motorbikes, Three wheelers:
Mumbai, Pune, Kanpur, Lucknow, Indore, Bangalore, Hyderabad, Ropar.
The automobile industry is making phenomenal progress in the country