Hyundai India: An Able Challenger to Maruti Suzuki?

Soon after India became independent, the Government of India (GOI) decided to keep the Indian automobile industry protected. Foreign companies were not allowed to operate in the country. The only way that foreign automobile companies could have a presence in the country was by entering into joint ventures with the local companies.

As a result of this policy, the Indian automobile market had just a few models to offer for a long time after independence – the ‘Ambassador’ from Hindustan Motors and some ‘Fiat’ models marketed in India by Premier Automobiles. Restrictions on foreign collaboration made it difficult for Indian automobile companies to improve their technology.