The automotive industry in India has come a long way from the 1950s when the annual production of vehicles was limited to 40 thousand. Early stages of production were confined to the three leading manufacturers – Hindustan Motors, Premier Automobiles and Standard Motors. Expertise in the automotive sector was by and large attained through trial and error in the early stages. Through the decades, the country emerged an important part in the global automotive industry - third largest in the Asia-Pacific in 2021.
The problem of decreasing air quality and increasing congestion has been a cause for concern within the automotive industry. India featured repeatedly in the list of most traffic congested as well as most polluted cities in the world. The government took a number of measures to deal with the increasing pressure from NGOs and environmental groups. New emission standards were released and the taxes on electric vehicles were reduced by a good margin as opposed to conventional vehicles. With India on its way to overtaking China to become the most populated country, the amount of traffic on narrow, partially developed roads could likely be a constant grapple. The increasing number of vehicles has indeed been an indicator of a burgeoning middle class, but sustainability is the need of the hour and it remains to be seen how much this aspect will help India’s automotive sectors.
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