Automotive industry in India

In 1952, the government appointed the first Tariff Commission, one of whose purposes was to come out with a feasibility plan for the indigenization of the Indian automobile industry. In 1953, the commission submitted their report, which recommended categorizing existing Indian car companies according to their manufacturing infrastructure, with licensed capacity to manufacture a certain number of vehicles, with capacity increases allowable, as per demands, in the future. The Tariff Commission recommendations were implemented with new policies that would eventually exclude companies that only imported parts for assembly, as well as those with no Indian partner. In 1954, following the Tariff Commission implementation, General Motors, Ford, and Rootes Group, which had assembly-only plants in Mumbai, decided to move out of India.[4]

The Tariff commission policies, including similar restrictions that applied to other industries, came to be known as the Licence Raj, which proved to be the greatest undoing of the Indian automotive industry, where bureaucratic red tape ended up causing demand to outstrip supply, with month-long waiting periods for cars, scooters, and motorcycles.

Passenger Cars

• Hindustan Motors, Calcutta – technical collaboration with Morris Motors to manufacture Morris Oxford models that would later become HM Ambassador.
• Addisons, Madras – An Amalgamations Group company, was the agent for Nuffield's Morris, Wolseley, and Riley cars, and Chrysler's Plymouth, Dodge, and De Soto cars and trucks. The first Morris Minor assembled in India and the first car assembled in Madras was driven out from Addison's twin-plants on Smith Road by Anantharamakrishnan on 15 November 1950.[5]
• Premier Automobiles, Bombay – technical collaboration with Chrysler to manufacture Dodge, Plymouth and Desoto models and with Fiat to manufacture the 1100D models which would later with Premier Padmini range.
• Standard Motor Products of India, Madras – technical collaboration from Standard-Triumph to manufacture Standard Vanguard, Standard 8, 10 and later Standard Herald.

Utility and Light Commercial Vehicles

• Vehicle Factory Jabalpur – started manufacturing Jonga Light Utility Vehicles and Vahan 1 Ton (Nissan 4W73 Carriers) in India, under license from Nissan of Japan. They were the main troop carriers of the Indian Armed Forces and much powerful than any other vehicle of their class.
• Mahindra & Mahindra, Bombay – technical collaboration with Willys to manufacture CJ Series Jeep.
• Bajaj Tempo, Pune, now Force Motors – technical collaboration with Tempo (company) to manufacture Tempo Hanseat, a three-wheeler and Tempo Viking and Hanomag, later known as Tempo Matador in India.
• Standard Motor Products of India – technical collaboration from Standard has licence to manufacture the Standard Atlas passenger van with panel van and one-tonne one tonne pickup variants.

Medium and Heavy Commercial Vehicles

Matang truck manufactured by the Vehicle Factory Jabalpur of OFB

Bhishma Tank manufactured at the Heavy Vehicles Factory, Chennai of the OFB

• Vehicle Factory Jabalpur – started manufacturing Shaktiman trucks with technical assistance from MAN SE of Germany. The trucks were the main logistics vehicle of the Indian Army with several specialist variants. VFJ still is the sole supplier of B vehicles to the Indian Armed Forces.
• Heavy Vehicles Factory – was established in 1965 in Avadi, Chennai to produce tanks in India. Since its inception, HVF has produced all the tanks of India, including Vijayanta, Arjun, Ajeya, Bhishma and their variants for the Indian Army. HVF is the only tank manufacturing facility of India.
• Tata Motors, Pune, then known as TELCO – technical collaboration with Mercedes Benz to manufacture medium to heavy commercial vehicles both Bus and Trucks.
• Ashok Motors, later Ashok Leyland, Madras – technical collaboration with Leyland Motors to manufacture medium to heavy commercial vehicles both Bus and Trucks. Ashok Motors also discontinued its Austin venture formed in 1948 to sell Austin A40 and retooled the factory to make trucks and buses.
• Hindustan Motors – technical collaboration with General Motors to manufacture the Bedford range of medium lorry and bus chassis.
• Premier Automobiles – technical collaboration with Chrysler to manufacture the Dodge, Fargo range of medium lorry, panel vans, mini-bus and bus chassis.
• Simpsons & Co, Madras – part of Amalgamations Group (TAFE Tractors) – technical collaboration with Ford to manufacture medium lorry and bus chassis, but did not utilise that option until the 1980s.

Scooters, Mopeds and Motorcycles

The Vespa 150 Sprint, known as Bajaj Chetak, by Bajaj became the largest sold scooter in the world.

• Many of the two-wheelers manufacturers were granted licenses in the early 1960s, well after the tariff commission was enabled.
• Royal Enfield (India), Madras – technical collaboration with Royal Enfield, UK to manufacture the Enfield Bullet range of motorcycles.
• Bajaj Auto, Poona – technical collaboration with Piaggio, Italy to manufacture their best selling Vespa range of scooters and three wheelers with commercial option as well.
• Automobile Products of India, Bombay (Better known for API Lambretta – technical collaboration with Innocenti of Milan, Italy to manufacture their Lambretta range of mopeds, scooters and three-wheelers. This company was actually the Rootes Group car plant that was bought over by M. A. Chidambaram family.
• Mopeds India Limited, Tirupathi – technical collaboration with Motobécane, France to manufacture their best selling Mobylette mopeds.
• Escorts Group, New Delhi – technical collaboration with CEKOP of Poland to manufacture the Rajdoot 175 motorcycle whose origin was DKW RT 125
• Ideal Jawa, Mysore – in technical collaboration with CZ - Jawa of Czechoslovakia for its Jawa and Yezdi range of motorcycles.

However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and the license raj, which hampered the growth of the Indian private sector.

The beginning of the 1970s saw some growth potential; and most of the collaboration license agreements came to an end, but with the option to continue manufacturing with renewed branding. Cars were still meant for the elite and Jeeps were largely used by government organizations and in some rural regions. By the end of the decade, some developments were made in commercial vehicle segments to facilitate the movement of goods. The two-wheeler segment remained unchanged except for to increased sales to the middle class in urban areas. There was emphasis on having more farm tractors, as India was embarking on a new Green Revolution; and Russian and eastern bloc imports were brought in to meet the demand.

But after 1970, with restrictions on the import of vehicles set, the automotive industry started to grow; but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars still remained a major luxury item. In the 1970s, price controls were finally lifted, inserting a competitive element into the automobile market.[6] However, by the 1980s, the automobile market was still dominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers.[7] The rate of car ownership in 1981 was about one in every thousand citizens – understandable when the annual road tax alone cost about half the average income of an Indian at the time.[8]

During the eighties, a few competitors began to arrive on the scene. Of the 30,487 cars built in India in 1980, all but six came from the two main players Hindustan and Premier: Standard had led a shadow existence in the latter half of the 1970s, producing only a handful of cars to keep their license active.[8] A new contender was tiny Sipani, who had tried building locally developed three-wheeled vehicles since 1975 but introduced the Reliant Kitten-based Dolphin in 1982. Nonetheless, all eyes were on Sanjay Gandhi's Maruti project, which was destined to cause major upheaval to the Indian automobile industry.[8]

The OPEC oil crisis saw increase need to installing or redesign some vehicle to fit diesel engines on medium commercial vehicle. Until the early 1970s Mahindra Jeeps were on Petrol and Premier commercial vehicles had Petrol model options. The Defence sector too had most trucks on Petrol engines.

First generation Maruti 800 launched in 1984

Chemical Biological Radiological and Nuclear Reconnaissance Vehicle (CBRN-RV) manufactured by the Ordnance Factory Medak of OFB

From the end of the 1970s to the beginning of the 1980s India saw no new models, the country continuing to depend on two decades-old designs. The Sipani Dolphin, which arrived in 1982, was not a serious contender, with its plastic body and without rear doors - essential to Indian car buyers. This situation forced the government to encourage and let more manufacturers into fray.

In 1984, the then Prime Minister of India, Indira Gandhi established the Ordnance Factory Medak, near Hyderabad. It started manufacturing Infantry Combat Vehicles christened as Sarath, the backbone of India's mechanised infantry. OFMK is still the only manufacturing facility of ICVs in India. To manufacture the high-power engines used in ICVs and main battle tanks, Engine Factory Avadi, near Chennai was set in 1987. In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The 1986 Expo was a showcase for how the Indian automotive industry was absorbing new technologies, promoting indigenous research and development, and adapting these technologies for the rugged conditions of India. The nine-day show was attended by then Prime Minister Rajiv Gandhi.

Tata Indica, launched in 1998

The Mahindra Scorpio was launched in 2002.

The Maruti Suzuki Dzire and its hatchback version, the Suzuki Swift are the best selling cars in recent years in India.

Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South Korea, were allowed to invest in the Indian market, furthering the establishment of an automotive industry in India. Maruti Suzuki was the first, and the most successful of these new entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s.[7] As India began to liberalise its automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The variety of options available to the consumer began to multiply in the nineties, whereas before there had usually only been one option in each price class. By 2000, there were 12 large automotive companies in the Indian market, most of them offshoots of global companies.[9]

Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and neighbouring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms provided to Indian manufacturers by multinationals were not competitive.[10] This was not to last, and today India manufactures low-priced cars for markets across the globe. As of 18 March 2013, global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to the competitiveness of the market, as well as the global economic crisis.[11]

In 2000, in line with international standards to reduce vehicular pollution, the central government unveiled standards titled "India 2000", with later, upgraded guidelines to be known as Bharat Stage emission standards. These standards are quite similar to the stringent European emission standards and have been implemented in a phased manner.

Bharat Stage IV (BS-IV), the most stringent so far, was implemented first, in April 2010, in 13 cities—Delhi (NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra—and then, as of April 2017, the rest of the nation.

In 2019, in line with international standards to reduce vehicular pollution, the central government of India announced the introduction of BS-VI norms to control air pollution, taking effect from 1 April 2020.[12]

India levies an import tax of 125% on foreign imported cars, while the import tax on components such as gearboxes, airbags, drive axles, is 10%. Therefore, the taxes encourage cars to be assembled in India rather than be imported as completely built units.[13]

As of 2019, India is the 4th largest automobile market in the world, surpassing Germany in terms of sales.[14]

Commercial and passenger vehicles

• Isuzu Motors India, in Sri City
• Kia Motors India, in Penukonda

Two wheelers

• Hero MotoCorp, in Satyavedu

Off-highway vehicles

• Kobelco Cranes, in Sricity

Reva electric car sold as G-Wiz in the UK

Passenger vehicles

• Tata Motors – Sanand[24]
• Ford India – Sanand.
• Suzuki Motor Gujarat – Ahmedabad
• Atul Auto – Rajkot
• MG Motor – Halol (formerly General Motors India Private Limited)

Two wheelers

• Hero MotoCorp – Surat, Gujarat[25]
• Honda Motorcycle & Scooter India – Vithalpur, Ahmedabad[26]

Commercial vehicles

• Asia Motor Works AMW – Bhuj[27]

Electric Vehicles

• Oculus Auto – Sabarkantha, Gujarat[19]

Two wheelers

• Harley-Davidson India, Bawal[28]
• Hero MotoCorp – Dharuhera, Gurgaon[25]
• Honda Motorcycle & Scooter India – Manesar[26]
• India Yamaha Motor – Faridabad[29]
• Suzuki – Gurugram[30]

Passenger vehicles

• Maruti Suzuki – Gurugram, Manesar[31]

Commercial vehicles

• JCB India – Faridabad[32]

Agricultural Vehicles

• Escorts Group-Faridabad

Two wheelers

• TVS Motor – Nalagarh[33]

Passenger vehicles

• ICML motors – Amb[34]

Commercial vehicles

• TAFE Tractors – Parwanoo[35]

Commercial vehicles

• Tata Motors – Jamshedpur[24]

Two wheelers

• TVS Motor – Mysuru[33]
• Honda Motorcycle & Scooter India Pvt. Ltd. - Narsapura[26]
• Ather Energy – Whitefield[36]

Passenger vehicles

• Mahindra Reva Electric Vehicles – Bengaluru[37]
• Toyota Kirloskar Motor Private Limited – Bidadi[38]

Commercial vehicles

A TVS Rickshaw in Chennai: India is one of the world's largest manufacturers of three-wheel vehicles.

Hero Honda CBZ, one of the popular models

A Volvo bus

State Transport Corporation are the largest buyers for Buses in India.

India is the world's largest Tractor manufacturer by volume.

Mahindra 3616 Four Wheel Drive sold in the US

L&T 752 Road Roller 2015

• Bharat Earth Movers - Bengaluru
• Scania Commercial Vehicles India Private Limited – Bengaluru[39]
• TAFE Tractors – Doddaballapur[35]
• Tata Motors – Dharwad[24]
• Bharat Earth Movers - Mysuru
• Volvo India
  • Volvo Buses India – Hosakote[40]
  • Volvo Trucks India – Hosakote[41]
  • Volvo Construction Equipment India – Hosakote[42]

Commercial vehicles

• Bharat Earth Movers Defense Products - produces Tatra Trucks 12x12, 10x10,8x8, 6x6, 4x4, and variants
• Kerala Automobiles Limited

Two wheelers

• Mahindra & Mahindra – Pithampur[43]

Commercial vehicles

• Vehicle Factory Jabalpur, Jabalpur
• Eicher Motors – Pithampur[44]
• Hindustan Motors – Pithampur[45]
• Force Motors Private Limited – Pithampur[46]
• TAFE Tractors – Mandideep[35]
• John Deere Tractors – Dewas[35]
• CASE Construction Equipment - Pithampur[47]

Two wheelers

• Bajaj Auto – Chakan (Pune) & Waluj, Aurangabad[48]
• KTM Sportmotorcycles – Chakan (Pune)
• India Kawasaki Motors – Chakan (Pune)
• Vespa Scooters – Baramati (Pune)[49]
• Kinetic Engineering – Pune[50]
• DSK Hyosung - Wai

Passenger vehicles

• Mahindra & Mahindra Automotive Division – Nashik, Chakan (Pune)[51][52]
• Ssangyong Motor Company – Chakan (Pune)[53]
• Tata Motors Limited
  • Tata Motors – Pimpri Chinchwad (Pune)[54]
  • Jaguar Cars – Pimpri Chinchwad (Pune) Pune[55]
  • Land Rover - Pimpri Chinchwad, (Pune).
• Mercedes-Benz Passenger Cars – Chakan (Pune)[56]
• Fiat Automobiles – Ranjangaon (Pune)[57]
• Jeep India – Ranjangaon (Pune)
• General Motors India – Talegaon (Pune)[58]
• Volkswagen Group Sales India Private Limited (Pune)
  • Volkswagen – Chakan (Pune)[59]
  • Skoda Auto - Chakan (Pune),
  • Audi AG – Shendra, Aurangabad[60]
  • Škoda Auto – Shendra, Aurangabad[61]
• Chinkara Motors – Karlekhind, Alibag[62]
• Premier Automobiles Limited – Pimpri Chinchwad (Pune)[63]

Commercial vehicles

• Ashok Leyland – Bhandara[64]
• Bajaj Auto (Pune) – Waluj, Aurangabad[48]
• Force Motors – Chakan (Pune)[65]
• Mahindra Navistar – Chakan, (Pune)[66]
• MAN Trucks India – Akurdi (Pune)[67]
• Piaggio Vehicles – Baramati (Pune)[68]
• Premier Automobiles Limited – Pimpri Chinchwad (Pune)[63]
• Eicher (VE Commercial Vehicles Ltd.) – Thane.
• Sany India – (Pune).
• Hyundai Construction Equipment – Chakan (Pune).
• Terex – Khed (Pune).
• Caterpillar - Banda, Sindhudurg.
• John Deere Tractors – Sanaswadi (Pune).

Commercial vehicles

• SML Isuzu Limited – Nawanshahar[69] (originally a Swaraj Mazda plant).
• Swaraj Tractors, Mohali.
• Sonalika Tractor Pvt Ltd, Hoshiarpur.
• Preet Tractor, Nabha.
• Standard Tractors, Barnala.

Two Wheelers

Honda Motorcycle & Scooter India – Tapukara[26] Hero Motocorp;Neemrana

Passenger vehicles

• Honda Cars India Ltd. – Tapukara[70]

Commercial vehicles

• Ashok Leyland – Alwar[64]
• TAFE Tractors – Alwar[35]

Two wheelers

• TVS Motor – Hosur[33]
• Royal Enfield – Chennai[71]
• India Yamaha Motor – Oragadam, Chennai

TVS Apache RR 310

Passenger vehicles

• BMW India – Mahindra World City, New Chennai[72][73]
• Ford India Private Limited – Maraimalai Nagar, Chennai[74]
• Hyundai Motor India Limited – Sriperumbudur, Chennai[75]
• Mitsubishi – Tiruvallur, Chennai[45]
• Renault Nissan Automotive India Private Limited
  • Nissan Motor India Private Limited – Oragadam, Chennai[76]
  • Renault India Private Limited – Oragadam, Chennai[77]
• Citroën India – Tiruvallur, Chennai

Commercial vehicles

T-90S Bhishma Tank's engine manufactured by Engine Factory Avadi, Chennai

• Heavy Vehicles Factory, Avadi, Chennai
• Engine Factory Avadi, Avadi, Chennai
• Ashok Leyland Limited
  • Ennore, Chennai – trucks, buses, engines, axles etc.
  • Hosur[64] – three adjacent plants (Hosur-1, Hosur-2, CPPS) for trucks, special vehicles and power units.
  • Sengadu Village, Kanchipuram – technical and production facility for Ashok Leyland Defence Systems
• BharatBenz – Oragadam, Chennai[78]
• Kamaz Vectra Motors – Hosur[79]
• SAME Deutz-Fahr Tractors – Ranipet, Vellore[80]
• TAFE Tractors – Chennai[35]
• TVS Motor – Hosur[33]

Defence

• Ordnance Factory Medak, Medak

Commercial vehicles

• Mahindra and Mahindra, Zaheerabad
• Deccan auto Limited, Patancheru

Two wheelers

• India Yamaha Motor – Greater Noida[81]
• LML – Kanpur

Passenger vehicles

• Honda Cars India Ltd. – Greater Noida[82]
• J.S. Auto (P) LTD. – Kanpur[83]

Commercial vehicles

• Tata Motors – Lucknow
• New Holland – Greater Noida

Commercial vehicles

• Ashok Leyland – Pantnagar
• Tata Motors – Pantnagar
• Mahindra & Mahindra – Haridwar

Two wheelers

• Hero MotoCorp – Haridwar
• Bajaj Auto – Pantnagar

Passenger vehicles

• Hindustan Motors Limited – Kolkata (Inactive)

Commercial vehicles

• Tata Hitachi Construction Machinery – Kharagpur

India exported $14.5 billion worth of automobiles in 2014. The 10 countries below imported 47.8% of that total.[95]

Maruti Swift in India. Maruti Suzuki is a subsidiary of Suzuki Motor Corporation of Japan.

Mahindra XUV500, one of India's best selling indigenously developed SUV

• Hradyesh:[117]Morris Street[118]
• ICML:[119] Extreme MCV
• Mahindra:[120]Bolero, Scorpio, Thar, Quanto, Verito, Verito Vibe, Genio, XUV500, e2o, TUV300, KUV100, NuvoSport, Marazzo, Alturas G4, XUV300
• Maruti Suzuki (subsidiary of Japanese auto maker Suzuki)[121][122] Alto K10, Alto 800, WagonR, Swift, DZire, Eeco, Ertiga, Celerio, Celerio X, Ciaz, Vitara Brezza, Baleno, Ignis, S-Cross, XL6, S-Presso, Jimny (exports only)[123]
• Tata Motors:[124] Venture, Xenon, Tiago, Tigor, Hexa, Nexon, Harrier, Altroz, Safari

• Sipani Automobiles
• Standard Motor Products of India

MG, Hyundai, Renault, Nissan, Datsun, Mitsubishi, Ford, Fiat, Honda, Toyota, KIA, Volkswagen, Skoda, Audi, Jaguar, Land Rover, Mercedes-Benz, BMW and MINI are the foreign automotive companies that manufacture and market their products in India.

Manufactured only in Chennai, India, the i10 is one of Hyundai's best selling globally exported cars.

• Audi India: A3, A4, A6, A8, Q3, Q5, Q7
• BMW India:[125] 3 Series, 5 Series, 7 Series, X1, X3, X4, X5
• Citroën India: C5 Aircross
• Datsun: Go, Go+, redi-Go
• Ford India:[126] Figo, Figo Aspire, Freestyle, EcoSport, Endeavour
• Honda Cars India Limited:[127] Jazz, Amaze, City, WR-V
• Hyundai Motor India:[128] Santro, Grand i10, Grand i10 Nios, Elite i20, Xcent, Aura, Verna, Elantra, Creta, Tucson, Venue
• Isuzu:[129][130] MU-X, V-Cross
• Jaguar (subsidiary of Tata Motors):[131] XE, XF, XJ
• Jeep: Compass
• Kia: Carnival, Seltos, Sonet
• MG: Gloster, Hector, ZS EV
• Land Rover (subsidiary of Tata Motors):[132] Discovery Sport, Range Rover Evoque, Range Rover Velar
• Mercedes-Benz India:[133] A-Class, C-Class, E-Class, GLA-Class, GLE-Class, GLC-Class, S-Class
• MINI:[134] Countryman.
• Nissan Motor India:[135] Kicks, Magnite
• Renault India:[136][137][138] Duster, Kwid, Triber, Kiger
• Škoda Auto India:[139][140] Rapid, Octavia, Superb, Kodiaq
• Toyota Kirloskar:[141] Innova Crysta, Fortuner, Camry, Yaris, Glanza, Urban Cruiser, Lexus ES300h
• Volkswagen India: Polo, Vento, Tiguan

Ford EcoSport subcompact crossovers for most world markets are assembled in the Chennai plant. The Ford EcoSport is the only mainstream vehicle exported to the United States that is assembled in India.

Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.

General Motors India stopped producing passenger cars for the Indian market in late 2017. It however continues to produce vehicles for export to other markets.

• AMW[144]
• Atul Auto
• Oculus Auto[19]
• Bajaj Auto
• Eicher Motors[145]
• Force[146]
• Hero Motocorp
• Hindustan Motors[147]
• Mahindra & Mahindra
• Premier[148]
• Tata Motors[149]

• Ashok Leyland[150] - originally a JV between Ashok Motors (owned by the Hinduja Group) and Leyland Motors, now joint ventures between Ashok Leyland and Nissan Motors (Japan) for LCV's; and John Deere (USA) for construction equipment.[151]
• KaMAZ Vectra[152] - A JV between Russia's KaMAZ and the Vectra Group
• MAN Force - A JV between Force Motors and MAN AG (Germany)
• SML Isuzu - originally, as Swaraj Mazda, a JV between Punjab Tractors and Mazda, now 53.5% owned by Sumitomo Group and with its current name since 2011.[153]
• Tatra Vectra - (defunct) Initial truck partnership with India by Vectra. Replaced by Kamaz. Tatra trucks for sale in India are now manufactured in collaboration with Bharat Earth Movers Limited.
• VE Commercial Vehicles Limited[154] - VE Commercial Vehicles limited - A JV between Volvo Group and Eicher Motors Limited.

• BharatBenz (Owned by Daimler AG of Germany and affiliated with Daimler's Fuso and Mercedes-Benz brands)[155]
• Caterpillar Inc.[156]
• DAF[157]
• Hino[158]
• Isuzu[159]
• Iveco[160]
• J. C. Bamford (JCB) (Owned by British multinational corporation J. C. Bamford).
• MAN
• Mercedes-Benz[161] - manufactures luxury coaches in India.
• Piaggio[162]
• Rosenbauer.[163]
• Scania[164]
• Tatra.[165]
• Volvo.[166]

During April 2012, the Indian government planned to unveil the road map for the development of domestic electric and hybrid vehicles (xEV) in the country.[167] A discussion between the various stakeholders, including Government, industry, and academia, was expected to take place during 23–24 February.[167] The final contours of the policy would have been formed after this set of discussions. Ministries such as Petroleum, Finance, Road Transport, and Power are involved in developing a broad framework for the sector. Along with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota Kirloskar), were involved in this task.[167] The Government has also proposed to set up a Rs 740 crore research and development fund for the sector in the 12th five-year plan during 2012–17.[167] The idea is to reduce the high cost of key imported components such as the battery and electric motor, and to develop such capabilities locally. In the year 2017, An Amaravati, Andhra Pradesh based Electric Vehicles manufacturing company called AVERA[168] New & Renewable Energy started electric scooters manufacturing[169] and are ready to launch their two models of scooters by the end of December 2018.[170]

Electric cars are seen as economical long-term investments, as one doesn't need to purchase gas, but needs only to recharge the battery, using renewable energy sources. According to the United States Department of Energy, electric cars produce half as much CO2 emissions as compared to a gas-powered car.[171] According to The Economic Times, 60% of Indian customers expect fuel prices to go up in the next 12 months and 58% expect to buy a new car in the same time frame. Most consumers are looking to buy a car which gives good mileage. According to the same source, 68% of Asian drivers expect higher mileage from their cars due to the higher fuel prices. This has encouraged 38% of Indian automobile consumers to switch to electric or hybrid cars.[172] Due to this change in the market, many companies, such as Toyota, have planned to introduce electric vehicles in India; and Suzuki has tested almost 50 electric prototypes in India already, according to Mashable.In 2019 Hyundai Launched India's First Electric Car Kona Electric .[173]

• Ather Energy
• Ajanta Group.[174]
• Bajaj Auto
• Oculus Auto[19]
• Hero Electric[175]
• Hyundai
• Mahindra[176]
  • Reva, now Mahindra Reva Electric Vehicles.
• MG Motor
• Tara International[177]
• Tata Motors[178]
• TVS Motor Company