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About Automobile Industries

Driving the most luxurious car has been made possible by the stiff competition in the automobile industry in India, with overseas players gathering the same momentum as the domestic participants. In 2009, the automobile industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry in India has been hit badly by the ongoing global financial crisis. The automobile industry in India happens to be the ninth largest in the world. Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. Several Indian automobile manufacturers have spread their operations globally as well, asking for more investments in the Indian automobile sector by the MNCs.

Automobile Technology in India

Potential of the Automobile industry In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similar plans are for General Motors.

Automobile Technology or automotive technology refers to the technologies that are incorporated in automobiles or vehicles. With the continuous advancement of technologies new inventions in the field of automobile technology is only paving the way for more and more technologically superior and sophisticated vehicles. Automobile technology is one of the most essential parts of the automobile industry today. There are a number of vehicles available in the market all of which require different technologies to support their smooth functioning. However the most important changes that has taken place in the automobile industry in India pertains to the development of the engine. In the cars using petrol the carburetor engine has been replaced by the Multi Point Fuel Injection (MPFI) engine. Similarly the engines running on diesel have undergone a sea change from the time Rudolf Diesel to the Rail Direct Injection (CRDI). Society of Indian Automobile Manufacturers (SIAM) is the body of Automobile Industries.

Major players in Indian Aerospace & Defence Industry

Leading Indian companies:-

⦁ Tata Motors
⦁ Mahindra & Mahindra
⦁ Hindustan Motors
⦁ TVS Motors
⦁ Bajaj Auto
⦁ Ashok Leyland.

Leading MNC Companies in India:-

⦁ BMW India
⦁ Mercedes-Benz India
⦁ Ford India
⦁ Maruti Suzuki
⦁ Volkswagen Group and its subsidiaries (Audi India, Skoda India, Volkswagen India)
⦁ Hyundai Motor India
⦁ General Motors India.

Regulatory Agencies:
The Ministry of Shipping, Road Transport & Highways (MoSRT&H) acts as the central agency for formulation and implementation of various provisions of the Motor Vehicle Act, 1988 (as amended) and Central Motor Vehicle Rules, 1989 (as amended) (“CMVR”). Additionally, the Ministry of Environment & Forest (MoEF), Ministry of Petroleum & Natural Gas (MoPNG) and Ministry of Non-conventional Energy Sources also govern various aspects of the automotive industry. The MoSRT&H has constituted certain standing committees of eminent individuals to advise the MoSRT&H on various issues including safety, standards for regulation of emissions etc. on the basis of which the MoSRT&H may consider modification(s) / amendment(s) to the CMVR:

CMVR- Technical Standing Committee:
Advises the MoSRT & H on technical aspects related to CMVR and any amendments that may be required in light of advancement in technology.
The Committee comprises of a wide range of stakeholders, from organizations such as the Ministry of Heavy Industries & Public Enterprises, Bureau of Indian Standards, Automobile Research Association of India, Society of Indian Automobile Manufacturers etc. Recommendations are made to the Government regarding international standards / best practices which can be used in lieu of standard notified under the CMVR to permit use of components / parts / assemblies complying with such standards. Additionally, CMVR-TSC is assisted by another committee called the Automobile Industry Standards Committee which advises in drafting the technical standards related to safety.

Rules and Regulation:
⦁ Motor Vehicles Act, 1988
⦁ Central Motor Vehicles Rules 1989
Governs emission norms and safety standards in India, Consolidates the law relating to motor vehicles lays down law relating to driving license, registration of motor vehicles, and control of traffic, construction, and maintenance of motor vehicles.

Legal services of Preach Law LLP

The firm provides advice on cutting-edge issues that cover multiple legal and business disciplines. Our expertise and understanding of the business is the foundation for providing full range of legal services including: 

  • Foreign Investments
  • Regulatory
  • Structuring
  • Import and Export Control Laws
  • Offset policy
  • Joint Ventures
  • Contracts
  • Teaming Agreements
  • Sourcing/ Supply Agreements
  • Manufacturing License Agreements
  •  Review/ Appeal of Administration Decisions
  • Arbitrations & Litigation
  • Bid Management