INTRODUCTION History

As per the history of Automobile Companies in India, in the late 1890's Tata Motors Launched its first truck in India. It was done in collaboration with Mercedes-Benz. Though automobiles were introduced to India in the late 19th century, it was only after the Indian independence in 1947 that India started manufacturing automobiles. Some of the early Automobile Companies in India are: Hindustan Motors Premier Automobiles Tata Motors Maruti Suzuki

Sanjay Gandhi was the first Indian politician who championed the need for a "people's car". Thus the state-owned firm, Maruti Udyog, was launched and gained over 50% market share. After the liberalization in 1991, India's Automobile Industry grew in leaps and bounds. With the growth in the Indian economy, big international car manufacturers like General Motors, Ford, Toyota, Honda, Hyundai, Rolls Royce, Bentley and Maybach entered the Indian market. Earlier in the 1920's Rolls Royce collections was the maharajas status symbol. With time the middle class also started possessing their own automobiles. With the introduction of several automobiles in India, highways or expressways were constructed. The renowned international automakers like Ford, Suzuki, GM and Honda have their manufacturing bases in India. But, Automobile Industry in India is dominated by domestic companies like Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Ashok Leyland and Bajaj Auto. Today Indian automotive industry is fully capable in producing various kinds of vehicles and can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.

Overview
The small car sector is one of the core industries of the Indian economy, whose prospect is reflective of the economic resilience of the country. In India is growing at around 18 per cent per annum. The small car sector has been contributing its share to the shining economic performance of India in the recent years. Due to its deep frontward and rearward linkages with several key segments of the economy, a small car industry has a strong multiplier effect and is capable of being the driver of economic growth. The small car sector has been contributing its share to the shining economic performance of India in the recent years. Side by side with fresh vehicle sales growth, the small car sector has witnessed big growth. India is on the peak of the Foreign Direct Investment wave due to the growth opportunities of the small car Industry. Basically Small cars are classified according to the price range which varies from 1 to 5 lakhs. It has the capacity to carry 4 passengers- 2 adults, 2 children. These are basically entry level cars which are preferred by service group and middle income group. These cars are basically manufactured by - Maruti Udyog and Reva. While companies like Volkswagon and Reva are yet to launch their models in the market.