User's Perception on Small Car Segment: A Study With Reference to Chennai

The first motor car on the streets of India was seen in 1898.Mumbai had its first taxi cabs in the early 1900.After fifty years, cars were imported to satisfy the domestic demands.From 1910 to 1920, the automobile industry made a humble beginning by setting-up assembly plants i n M u m b a i , K o l k a t t a a n d C h e n n a i .T h e imported/assembly of vehicles grew consistently after 1920's, crossing 30,000 mark in 1930.In 1946, Premier Automobile Ltd. (PAL) earned the distinction of manufacturing the first Car in the country by assembling `Dodge Desoto' and `Plymouth' cars in its Kuala plant.Hindustan Motors (HM), which started as a manufacturer of auto components graduated to manufacture Cars in 1949.In 1952, the Govt. of India setup a tariff commission to devise regulations to develop on indigenous automobile industry in the country.After the commission submitted its recommendations, the Government of India asked assembly plants, which did not have plans to setup manufacturing facilities, to shut operations.As a result General motors, Ford and other assemblies closed operations in the country.In 1954, the decision of the Government marked a turning point in the history of the Indian Car Industry.The Govt. of India instructed what type of vehicle each manufacturer should make.Therefore, each product was safety cocooned in its own segment with no fears of any impending competition.Even though new entrant was not allowed, they had plans of a full-pledged manufacturing program.The restrictive set of policies was chiefly aimed at building an indigenous auto industry.However, the restrictions in foreign collaborations led to limitations on import of technology through technical agreements.