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The Indian automobile industry

The manufacturer industry in India started in 1947. In the earliest years of the industry and till the 1980s, the economic protectionism made that only a few small manufacturers (such as Tata Motors or Bajaj Auto) could stand in the market. In 1981, Maruti Udyog was created and launched the Maruti 800 “the people’s car”, a small low-priced car, which made Maruti to gain over a 50% in the market share and to become the leader in the market.
Concerning the automotive industry, until the mid ‘80s, most Indian automobile companies relied in a policy of using more than one ancillary for a product. That signifies that companies had little incentive to increase its capacity or to improve technology. As a result of that policy, the rate of defective parts was higher for Indian automobile companies than that of the global average. The situation changed with the entrance of the Maruti 800 due to the fact that it required components that adhered to......

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Approximate Word Count: 3687
Approximate Pages: 15 (250 words per double-spaced page)

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