Changing Trends in Road Transportation Industry in India

The modes of road transportation in India can be broadly divided into three different segments – two-wheelers & three-wheelers; cars & utility vehicles; and heavy & commercial vehicles. Through the mid-1990s and into the 21st century, the face of Indian road transport has witnessed significant changes. The change was triggered by the economic liberalization in the early 1990s, which led to the entry of many global automobile majors such as Toyota, Hyundai, Ford, Skoda and DaimlerChrysler.

Until then, they had been barred from setting up manufacturing or marketing facilities in India since the government's restrictive policies aimed at protecting domestic automobile players.

The intensified competition in various segments of the industry also led to trends such as affordable pricing, increased buyer incentives and attractive financing packages. These trends, coupled with the buoyant economy, favourable monsoons, urbanization and rising number of double income families led to drastic changes in customer preferences. This markedly changed the face of the two-wheeler and four-wheeler segments of the Indian automobile industry.

However, a note on India's road transportation industry is incomplete without the mention of bicycles, which were the basic mode of transportation in the country from the early 1950s.