Evolution of Automobile Industry
Manufacturing was licensed•High Customs duty on import•Steep excise duties &•Sales tax•2 Major players:Premier Automobiles Ltd& Hindustan Motors
•Entry of MUL, better product,with government support•Seller’s Market•Long Waiting Periods
Early to mid 90s
•Seller’s market and longwaiting periods•Delicensing in 1993•Removal of capacityrestrictions•Decrease in customs &excise•Auto finance boom- moreplayers (foreign banks & nonbanking companies, better schemes.
Mid 90s – Early 2000s
•Buyers market•Increase in Indigenization•Easy Auto finance•Manufactures diversifyinginto related activities:finance lease, fleetmanagement, insuranceand used car market