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1980 to 81 Automobile Industry

Discuss 1980 to 81 Automobile Industry within the Business Environment forums, part of the Resolve Your Query - Get Help and discuss Projects category; Automobile Industry 1981 – 1990 The technological backwardness of the Indian two-wheeler industry was one of the reasons for the ...

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1980 to 81 Automobile Industry
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Sunanda K. Chavan
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1980 to 81 Automobile Industry - September 21st, 2010

Automobile Industry 1981 – 1990

The technological backwardness of the Indian two-wheeler industry was one of the reasons for the initiation of reforms in 1981. Foreign collaborations were allowed for all two-wheelers up to an engine capacity of 100 cc.

This prompted a spate of new entries into the industry the majority of which entered the motorcycle segment, bringing with them new technology that resulted in more efficient production processes and products.


The variety in products available also improved after ‘broadbanding’ was allowed in the industry in 1985 as a part of NEP.


This, coupled with the announcement of the minimum scale of efficiency of production for the two wheeler industry, gave firms the flexibility to choose an optimal product and capacity mix which could better incorporate market demand into their production strategy and thereby improve their capacity utilization and efficiency.

These reforms had two major effects on the industry:

• First, licensed capacities went up to1.1 million units per annum overshooting the 0.675 million units per annum target set in the Sixth Plan.

• Second, several existing but weaker players died out giving way to new entrants and superior products.
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Re: 1980 to 81 Automobile Industry - May 9th, 2016

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Originally Posted by sunandaC View Post
Automobile Industry 1981 – 1990

The technological backwardness of the Indian two-wheeler industry was one of the reasons for the initiation of reforms in 1981. Foreign collaborations were allowed for all two-wheelers up to an engine capacity of 100 cc.

This prompted a spate of new entries into the industry the majority of which entered the motorcycle segment, bringing with them new technology that resulted in more efficient production processes and products.


The variety in products available also improved after ‘broadbanding’ was allowed in the industry in 1985 as a part of NEP.


This, coupled with the announcement of the minimum scale of efficiency of production for the two wheeler industry, gave firms the flexibility to choose an optimal product and capacity mix which could better incorporate market demand into their production strategy and thereby improve their capacity utilization and efficiency.

These reforms had two major effects on the industry:

• First, licensed capacities went up to1.1 million units per annum overshooting the 0.675 million units per annum target set in the Sixth Plan.

• Second, several existing but weaker players died out giving way to new entrants and superior products.
Hey sunanda,thanks for sharing such a nice information on automobile sector of India from year 1981 - 90. Well, i thought i should also add some more content so uploading a document which may give more detail on Indian automobile industry.
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Butch Cortez
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Re: 1980 to 81 Automobile Industry - 3 Weeks Ago

You guys is informative, no ecxwss salavia and actions. Thank you akqays guys
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