By
Nikhil Gupta
F2012A4PS227P
B.E.(Hons.): Mechanical
BITS Pilani, Pilani Campus
Past,
Present
and
Future
NIKHIL GUPTA
F2012A4PS227P
DEVELOPMENT
OF
AUTOMOBILE
INDUSTRY
Popularity of the automobile has consistently moved with the state of the
economy, growing during the boom period after World War I and dropping abruptly
during the Great Depression, when unemployment was high. World War II saw a
large increase in mass transit because employment was high and automobiles were
scarce. The rapid growth of car owners after World War II, particularly in the United
States and Western Europe demonstrated the population's favor towards
automobiles. During the war, automobile motors, fuel, and tires were in short supply.
There was an unsatisfied demand when the war ended and plenty of production
capacity as factories turned off the war machine. Many people had saved money
because there was little to buy, beyond necessities, in the war years. Workers relied
heavily on mass transportation during the war and longed for the freedom and
flexibility of the automobile.[1]
1.http://l3d.cs.colorado.edu/systems/agentsheets/new-vista/automobile/
Where did the name Automobile come from?
"The new mechanical wagon with the awful name automobile has come to stay..."
New York Times (1897 article)
The New York Times' mention of the name automobile was the first public use of the
term by the media and helped to popularize that name for motor vehicles. However,
the credit for the name automobile goes to a 14th Century Italian painter and
engineer named Martini.
Martini never built an automobile but he did draw plans for a man-powered carriage
with four wheels. Martini thought up the name automobile from the Greek word,
"auto," (meaning self) and the Latin word, "mobils," (meaning moving).
The other popular name for an automobile is the car. The word car is derived from
Celtic word "carrus," (meaning cart or wagon).[2]
2. http://inventors.about.com/library/weekly/aaautomobilenameorigin.htm
It all began with the discovery of wheel. It could marked as one of the important
landmarks in the history of Automobiles. After its discovery , people started to
explore the power of wheel. Initially they started making carriages driven by humans
or an animal. We can easily find these inventions in rural places of every part of the
World.
These carriages had their own limitation. Human or Animal power cant run
those carriages as fast as per our need. Moreover, It also limits the load we can
carry on these vehicle. These carriages lack a proper suspension system which
made it very difficult to travel on roads at that time.
As we know,
Necessity is the Mother of Invention
People start thinking of a vehicle which would be self propelled and
overcome all limitation of previous inventions. The idea of a self propelling vehicle
was revolutionary at that time. Many people couldnot even believe that such
vehicles would exist in future.
And the invention of Modern Automobile underwent.
One of the attempt was made by Guido da Vigenvano in 1335. Vaturo designed
a similar vehicle to Vigenvano, but he couldnt built it.[3]
Later Leonardo da Vinci designed clockwork driven tricycle with tiller steering
and a differential mechanism between the rear wheels.
Ferdinand Verbiest, a member of a Jesuit mission in China , built the
first steam-powered vehicle around 1672 as a toy for the Chinese Emperor. It was of
small enough scale that it could not carry a driver but it was, quite possibly, the first
working steam-powered vehicle .[4]
3.Chapter4http://shodhganga.inflibnet.ac.in/bitstream/10603/3722/13/13_chapter%204.pdf
4.B.M.Birla, THE AUTOMOBILE INDUSTRY IN INDIA , Hindustan Motors LTD
,1966.
Captain Nicholas Cugnot of French Army, designed a land vehicle, which moved
under its own power. He demonstrated his fardier vapeur (Steam Dray) , an
experimental steam-driven artillery tractor, in 1770 and 1771. Some people believe
that Cugnot's design proved to be impractical, his invention was not developed in his
native France.While others think that M.Brezin constructed the model in 1769.Not
even this, a Second Model was built in1770,which weighed 8000 pounds and had a
top speed of 2 miles per hour. This speed was quite convincing keeping in mind the
condition of cobblestone road at that time.
Steam-powered self-propelled vehicles large enough to transport people
and cargo were first devised in the late 18th century.
Steam engines powered cars by burning fuel that heated water in a boiler,
creating steam that expanded and pushed pistons that turned the crankshaft, which
then turned the wheels. During the early history of self-propelled vehicles - both road
and rail roadvehicles were being developed with steam engines. (Cugnot also
designed two steam locomotives with engines that never worked well.) Steam
engines added so much weight to a vehicle that they proved a poor design for road
vehicles; however, steam engines were very successfully used in locomotives.
Historians, who accept that early steam-powered road vehicles were automobiles,
feel that Nicolas Cugnot was the inventor of the first automobile.[5]
5.http://inventors.about.com/library/weekly/aacarssteama.htm
After Cugnot Several Other Inventors Designed Steam-Powered Road Vehicles
Cugnot's vehicle was improved by Frenchman, Onesiphore Pecqueur, who
also invented the first differential gear.
In 1789, the first U.S. patent for a steam-powered land vehicle was granted to Oliver
Evans.
In 1801, Richard Trevithick built a road carriage powered by steam - the first in Great
Britain.
In Britain, from 1820 to 1840, steam-powered stagecoaches were in regular service.
These were later banned from public roads and Britain's railroad system developed
as a result.
Steam-driven road tractors (built by Charles Deitz) pulled passenger carriages
around Paris and Bordeaux up to 1850.
In the United States, numerous steam coaches were built from 1860 to 1880.
Inventors included: Harrison Dyer, Joseph Dixon, Rufus Porter, and William T.
James.
Amedee Bollee Sr. built advanced steam cars from 1873 to 1883. The "La Mancelle"
built in 1878, had a front-mounted engine, shaft drive to the differential, chain drive to
the rear wheels, steering wheel on a vertical shaft and driver's seat behind the
engine. The boiler was carried behind the passenger compartment.
In 1871, Dr. J. W. Carhart, professor of physics at Wisconsin State University, and
the J. I. Case Company built a working steam car that won a 200-mile race.
The centre of innovation shifted to Great Britain. By 1784, William Murdoch had
built a working model of a steam carriage in Redruth, and in 1801 Richard
Trevithick was running a full-sized vehicle on the road in Camborne.
In 1801 the British engineer Richard Trevithick also
built a three-wheeled, steam-driven car; the engine drove the rear wheels.
Development of the automobile was retarded for decades by over-regulation: speed
was limited to 4 mph (6.4 kph) and until 1896 a person was required to walk in front
of a self-propelled vehicle, carrying a red flag by day and a red lantern by night. The
Stanley brothers of Massachusetts, the most well-known American manufacturers of
steam-driven autos, produced their Stanley Steamers from 1897 until after World
WarI.[6]
6.http://www.infoplease.com/encyclopedia/science/automobile-developmentautomobile.html
Such vehicles were in vogue for a time, and over the next decades
such innovations as hand brakes, multi-speed transmissions, and
better steering developed.
Some were commercially successful in providing mass transit,
until a backlash against these large speedy vehicles resulted in the passage of
the Locomotive Act (1865), which required self-propelled vehicles on public roads in
the United Kingdom to be preceded by a man on foot waving ared flag and blowing
a horn.[7]
7. http://su.wikipedia.org/wiki/Otomotif
This effectively killed road auto development in the UK for most of the rest of the
19th century; inventors and engineers shifted their efforts to improvements
in railway locomotives. ( The law was not repealed until 1896, although the need for
the red flag was removed in 1878.).
The first automobile patent in the United States was granted to Oliver
Evans in 1789.
In the late 1800s, many Americans also experimented with steam
automobiles. These automobiles were not successful, because it took a long time for
the engines to heat up, they cost a lot to make, they caused a lot of noise, and
sometimes they exploded if too much pressure built up in the engine.
Birth of trains
The early steam powered vehicles were so heavy that they were only
practical on a perfectly flat surface as strong as iron. A road thus made out of iron
rails became the norm for the next hundred and twenty-five years. The vehicles got
bigger and heavier and more powerful and as such they were eventually capable of
pulling a train of many cars filled with freight and passengers.[8]
America quickly shifted their focus on laying down railway line. There long
sighted vision lead them have the reason the longest rail network in the world .
Trains were perfect for freight movement across the country. Even in present times,
they are widely used to transport freight and other commodity goods across the
nation as well as across the countries. Trains are omnipresent in every sphere of
business industry.
Train Industry could be said to be born out of automobile industry.
8. http://shodhganga.inflibnet.ac.in/bitstream/10603/3722/13/13_chapter%204.pdf
Various uses
In a few years, similar engines were being made in the United States as a new and
attractive source of power for lumbering, pumping, power generation and marine
uses. And it was not long before men were tinkering with the idea of using such an
engine to propel a carriage .[9] Development automobiles facilitated the growth of
these industries.
Development in Europe
Many attempts were being made in England by the
1830's to develop a practical vehicle that didn't need rails. A series of
accidents and propaganda from the established railroads caused a flurry of
restrictive legislation to be passed and the development of the automobile
bypassed England. Several commercial vehicles were built but they were more
like trains without tracks.[10]
10. http://shodhganga.inflibnet.ac.in/bitstream/10603/3722/13/13_chapter%204.pdf
Development of Engine
Engine design and car design were integral activities, almost all of the
engine designers also designed cars, and a few went on to become major
manufacturers of automobiles.[11]
11.http://inventors.about.com/library/weekly/aacarsgasa.htm
the four cars, which Marcus built, is in the Vienna Technical Museum and can
still be driven under its own power.
One of the most important landmarks in engine
design comes from Nicolaus August Otto who in 1876 invented an effective gas
motor engine. Otto built the first practical four-stroke internal combustion engine
called the "Otto Cycle Engine," and as soon as he had completed his engine, he built
it into a motorcycle. Otto's contributions were very historically significant, it was his
four-stoke engine that was universally adopted for all liquid-fueled automobiles going
forward.[12]
12. http://inventors.about.com/library/weekly/aacarsgasa.htm
In 1876, Nokolaus Otto patented the Otto
cycle engine, de Rochas had neglected to do so, and this later became the basis
for Daimler and Benz breaking the Otto patent by claiming prior art from de
Rochas.`
13.http://inventors.about.com/library/weekly/aacarsassemblya.htm
A brief outline of the history of the internal combustion engine includes the
following highlights[14]:
1680 - Dutch physicist, Christian Huygens designed (but never built) an internal
combustion engine that was to be fueled with gunpowder.
1807 - Francois Isaac de Rivaz of Switzerland invented an internal combustion
engine that used a mixture of hydrogen and oxygen for fuel. Rivaz designed a car
for his engine - the first internal combustion powered automobile. However, his
was a very unsuccessful design.
1824 - English engineer, Samuel Brown adapted an old Newcomen steam engine
to burn gas, and he used it to briefly power a vehicle up Shooter's Hill in London.
1858 - Belgian-born engineer, Jean Josephtienne Lenoir invented and patented
(1860) a double-acting, electric spark-ignition internal combustion engine fueled
by coal gas. In 1863, Lenoir attached an improved engine (using petroleum and a
primitive carburetor) to a three-wheeled wagon that managed to complete an
historic fifty-mile road trip. (See image at top)
1862 - Alphonse Beau de Rochas, a French civil engineer, patented but did not
build a four-stroke engine (French patent #52,593, January 16, 1862).
1864 - Austrian engineer, Siegfried Marcus*, built a one-cylinder engine with a
crude carburetor, and attached his engine to a cart for a rocky 500-foot drive.
Several years later, Marcus designed a vehicle that briefly ran at 10 mph that a
few historians have considered as the forerunner of the modern automobile by
being the world's first gasoline-powered vehicle .
1873 - George Brayton, an American engineer, developed an unsuccessful twostroke kerosene engine (it used two external pumping cylinders). However, it was
considered the first safe and practical oil engine.
1866 - German engineers, Eugen Langen and Nikolaus August Otto improved on
Lenoir's and de Rochas' designs and invented a more efficient gas engine.
1876 - Nikolaus August Otto invented and later patented a successful four-stroke
engine, known as the "Otto cycle".
1876 - The first successful two-stroke engine was invented by Sir Dougald Clerk.
1883 - French engineer, Edouard Delamare-Debouteville, built a single-cylinder
four-stroke engine that ran on stove gas. It is not certain if he did indeed build a
car, however, Delamare-Debouteville's designs were very advanced for the time ahead of both Daimler and Benz in some ways at least on paper.
1885 - Gottlieb Daimler invented what is often recognized as the prototype of the
modern gas engine - with a vertical cylinder, and with gasoline injected through a
carburetor (patented in 1887). Daimler first built a two-wheeled vehicle the
"Reitwagen" (Riding Carriage) with this engine and a year later built the world's
first four-wheeled motor vehicle.
1886 - On January 29, Karl Benz received the first patent (DRP No. 37435) for a
gas-fueled car.
1889 - Daimler built an improved four-stroke engine with mushroom-shaped
valves and two V-slant cylinders.
1890 - Wilhelm Maybach built the first four-cylinder, four-stroke engine.
14.http://inventors.about.com/library/weekly/aacarsgasa.htm
Development in India
Stages of Development
The evolution of Indias automotive industry is identified to
have occurred in four phases. In the first (1947-1965) and second phase (19661979), the important policies identified were related to protection, indigenisation and
regulation of the industry. On the one hand, these policies helped India to build an
indigenous automotive industry, while on the other it led to unsatisfactory industry
performance. In the third phase (1980-1990), the single most important policy
identified was the one with regard to relaxation in the means of technology
acquisition. The foreign competition inducted into the industry transformed its
dynamics. Lastly, in the fourth phase (1991 onwards) the liberalisation with regard to
foreign investment had a significant influence on the Indian automotive industry as
we see it today.[15]
15.Influence of Government Policies on Industry Development: The Case of Indias
Automotive Industry, Mahipat Ranawat and Rajnish Tiwari , March 2009 , Working Paper
No. 57
[16]
The realisation of the dream of an independent India had brought along with
itself the challenge of nation building for its leaders. The dismal performance of
countrys agricultural and industrial sector under the shackles of colonial rule had led
to abject levels of poverty within the population. Among other things, the leaders of
the nation had to decide upon the type of economic system that would set the pace
of Indias economic development promoting welfare of all its citizens. In light of the
socioeconomic conditions then existing within the country, the newly formed
government under the prime ministerial leadership of Jawaharlal Nehru preferred a
mixed economy for the nation. This implied that the decision making of what to
produce, how to produce and how to distribute was to be shouldered by both the
State and the market. In consideration of the vast social and economic inequalities
then prevailing within the Indian society, the State decided to assume a bigger role
for itself in the nations economic development.
In the mean time, the Constitution of India came into force in January 1950.
Subsequently, the Planning Commission was set up in March 1950 to oversee the
formulation and implementation of Indias Five-Year Plans (FYP).The commission
had the responsibility of assessing all the resources ofthe country, augmenting
deficient resources and making plans for the deployment of the resources in the
most effective and balanced manner in consideration to the nations priorities. With
respect to the automotive industry, the commission planned the total number of
vehicles (per vehicle type) thatwere to be produced in the given plan period
depending upon countrys needs and the resources at disposal. For instance, the
First FYP covering the period 1951-1956 and introduced in April 1951, targeted to
raise the production of vehicles in the country from 4,077 in 1951 to 30,000 in 1956
(GOI 1951). Accordingly, the Ministryof Industry administered the capacity licenses
to the automobile firms.
In March 1952, the government decided to replace its hitherto gut-reaction policy for
the automotive industry with a more studied and comprehensive approach to the
industry (Kathuria 1996). It referred to Tariff Commission the question of providing
protection/assistance for the encouragement of automotive industry. As per The
Tariff Commission submitted its report in 1953 recommending that only units with a
plan for progressive manufacture of components and complete vehicles may be
allowed to operate. It also recommended against any price controls and advised the
government to maintain a watch on the prices. Subsequently, the recommendations
of the commission were adopted by the government. Foreign assemblers like
General Motors and Ford who considered the domestic demand too low to warrant a
local manufacturing programme were obliged to close down their operations within
three years. Thus, the exit of foreign assemblers by 1956 and the ban on import of
fully-built vehiclessince 1949 effectively protected the Indian automotive industry
from foreign competition.
based on its equity collaboration with British Leyland (UK). Standard Motor Products
was in collaboration with Standard Motors (UK) for the production of cars and CVs.
Subsequently, manufacturing programme of one more firmMahindra & Mahindra
(M&M) was approved for the manufacturing of UVs Willys Jeeps.
After adoption of the Constitution and the integrated socioeconomic goals, the
industrial policy was revised and adopted in May 1956. Known as the Industrial
Policy Resolution of 1956, the revised industrial policy described socialist pattern of
society as the objective of Parliaments social and economic policy (GOI 2008b).
Accordingly, the IPR of 1956 signalled higher level of State participation for
accelerating industrial development. The resolution grouped the industries into
Schedule-A, Schedule-B and the remaining. Schedule-A industries were either
exclusive monopolies of the central government or were industries in which any new
undertaking was solely reserved for the State.Schedule-B included industries in
which the State would establish new undertakingsfor accelerating the future
development, and in which the private enterprises had equal opportunity for the
same. The remaining industry list, which included the automotive industry, was left to
the initiatives and enterprise of the private sector. However, the State reserved its
right to participate in the future. Thus, the automotive industry under IPR of 1956 had
been provided with necessary autonomy for functioning.
The IPR of 1956 was followed by the introduction of Second FYP (1956-1961). In
contrast to its predecessor, which focused on the development of agrarian sector,
the Second FYP had ambitious programmes for rapid development ofthe industrial
sector. Massive investments were planned for the public sector and the amount of
deficit financing was around INR 1,600 million per year (GOI 1993). The plan
targeted a production capacity of 40,000 trucks, 12,000 cars and 5,000 jeeps for the
automotive industry by end of the year 1960-61 (GOI 1956). As evident, more
emphasis was laid on the production of trucks with regard to the nations priorities.
Also, the plan aimed at stepping up the indigenous content of the automobiles to
80% by end of the year 1960-61. Meanwhile by 1956, Tata Engineering &
Locomotive Company (TELCO) and Bajaj Tempo with programmes of CVs entered
the industry. TELCO was in collaboration with Daimler-Benz of Germany and Bajaj
Tempo initially produced 3-wheelers under the license of Vidal & Sohn Tempo
Werke of Germany. Additionally, Enfield India with a programme of manufacturing
motorcycles also entered the industry.
In order to encourage the domestic production and to keep the automobile prices
low, the government in early 1950s had maintained lower import duties on the
components still being imported. However, a steep rise in the prices made the
government to approach the Tariff Commission for the second time in August 1955.
The commission was asked to enquire into and recommend a price policy for the
automobiles. In its report submitted in October 1956, the commission maintained its
initial recommendation against the price controls, as they might undermine the
development of the industry. It also suggestedreviewing the whole question of
protection granted to the automotive industry after a period of ten years.
The situation however changed very soon with the balance-of-payments crisis that
sprang up in 1956-57. The ambitious Second FYP with massive outlays on industrial
development had strained the nations foreign reserves. Immediate measures
required to counter the economic crisis included cuts on foreign exchange allocated
to the automobile manufacturers. Moreover, these firms were permitted to produce
only one model each. The ensuing reduction in import of vital components compelled
the firms to reduce the production. As a result, severe backlogs were generated for
the production orders. The decrease in supply of automobiles resulted in steep price
increases owing to supply-demand economics. At this juncture, the government
decided to impose informal price control on automobiles, which was accepted by
the manufacturers. The informal price control mechanism required the customer to
place the order with the dealer and submit a partial payment to the Indian Postal
Service. The manufacturer then had to deliver the automobiles in the sequence of
the orders registered with the Indian Postal Service. The government also fixed the
dealer commission to a maximum of 10% and asked the manufacturers to intimate
any decision of raising ex-works prices in advance.
Indias war with China in 1962 and with Pakistan in 1965, along with poor
agricultural production due to successive severe droughts had led to financial crisis
in the country by mid-1960s. The financial situation improved to someextent with the
help of a loan from International Monetary Fund (IMF) in 1966. However, the
formulation and implementation of Fourth FYP was put down and instead three
annual plans were drawn up for the period 1967 to 1969. On the political front, the
void created by sudden death of Indias fourth Prime Minister in 1966 was filled by
Mrs. Indira Gandhi. In the general elections of 1967, Mrs. Gandhi was re-elected as
Indias fifth Prime Minister and this to an extent deflected the development path of
Indias automotive industry.
During her rule till 1977, the populist stance taken by the government
perceptibly altered the automotive policy. The first change was initiated in May 1966
with government directing the Tariff Commission to look into the whole question of
continuance of grant of protection to the automotive industry. The government also
asked the Tariff Commission to enquire into the cost structure and fair selling price of
different type of automobiles. Although the review was already due as mentioned in
Tariff Commissions earlier report in 1956, Pingl (1999, p. 96) however suggests
that the increasingly dominant populist ideology with its anti-big industry emphasis
within the political leadership had actually led to the third-enquiry. Based on its
report submitted in the same year, the Tariff Commission recommended the
government: a) to help industry attain minimum efficient scale by limiting the number
of models to an absolute minimum b) to impose price controls on passenger cars.
Subsequently, the government imposed statutory price controls on passenger cars in
September 1969.
Meanwhile, Indias first competition law known as the Monopolies &
Restrictive Trade Practices Act (MRTP) was passed in 1969.The law was prepared
to keep a check on the concentration of economic power in private hands by
preventing monopolistic and restrictive trade practices in important economic
activities. The MRTP Act classified companies with more than INR 200 million in
fixed assets and/or having a dominant market share of onefourth or more as MRTP
companies. Such companies were required to obtain additional clearances (apart
from those specified by the IDRA) inorder to enter, expand, relocate, merge or
acquire. The cumbersome process of obtaining MRTP clearances, which involved
public notification of investment plans and semi-public hearings, acted as a deterrent
for the companies. Subsequently, MRTP Commission was set up in 1970 for
monitoring monopolistic practices in the industrial sector. Thus, many automotive
firms owing to their high levels of investment came under the purview of MRTP
Commission. TELCO was one of the first companies to come under the scrutiny of
the commission when it applied for increasing its licensed capacity from 24,000 to
36,000 units in December 1970 (Kathuria 1996).
Government policies related to foreign collaboration and foreign investment also
underwent changes during Mrs. Gandhis regime. In the wakeof growing
criticismsregarding influx of foreign equity collaborations and the dependence on
foreign technology, the government appointed Mudaliar Committee in 1968 to look
into the whole question of foreign collaborations. The stricter approach to foreign
equity collaboration recommended by the committee was adopted by the
government. Subsequently, Foreign Investment Board was established in 1968 to
critically review the acquisition of foreign technology by allowing foreign equity
participation. In line with its stricter approach, the government enacted Foreign
Exchange Regulation Act (FERA) in September 1973 consolidating and amending
the then existing laws on foreign exchange transactions.With its objective of
conserving countrys foreign exchange reserves and ensuring judicious use of the
same as per nations priorities, the FERA regulated the import of foreign supplies
and the functioning of foreign collaborations. The provisions of the Act created
additional constraints on the import of technology, raw materials and components for
the industrial sector in general and the automotive industry in particular. The
maximum foreign equity participation was brought down to 40% under FERA, with
exceptions permitted only at States discretion. Also, FERA classified the companies
with morethan 40% foreign equity as FERA companies. These companies were
subjectto greater scrutiny in their operations. Thus, the enactment of MRTP and
FERA in the early-half of this phase strengthened the regulations surrounding the
Indian automotive industry. The fourth FYP (1969-1974) was introduced in1969. The
financial crunch combined with populist ideology of the ruling party manifested itself
into reduced plan outlays for the industrial sector. With regard toits policy for
automobiles, the government was very clear in its preference for means of affordable
personal and public transport asagainst to luxurious passenger cars. From an actual
production of 35,300 CVs and 84,600 2-/3-wheelers in 1968-69, the fourth FYP
targeted to reach anannual production of 85,000 CVs and 210,000 2-/3-wheelers by
the end of 1973-74 (GOI 1969). Onthe other hand, no additional capacity was
planned for the passenger cars. Between 1970 and 1975, Kinetic Engineering and
state-owned Scooters India made their entry into the 2-wheeler segment. Kinetic
Engineering began producing mopeds, whereas Scooters India commenced
production of scooters.
A further setback to the automotive industry came during this phase with the
beginning of the Oil Crisis in October 1973. The substantial rise in the import bill of
crude oil led to the balance-of-payments crisis. As a result, India approached IMF for
a monetary loan to dampen the oil shock effects. The financial woes of the country
made the bureaucrats ofthe Ministry of Finance and the Ministry of Industry to take a
closer look at the development of the automobile industry, especially the low fuelefficiency of the Indian automobiles. This study led to the division of automobile
industry intoluxury (passenger cars) and non-luxury (rest of the industry) segments.
The ministries decided to provide encouragement for the growth and technological
development of non-luxury segment, leaving out the luxury segment. Accordingly,
CVs were added to the Appendix-I list in 1973, which meant that the applications for
capacity licenses, foreign collaborations, etc. from the CV manufacturers (including
MRTP/FERA companies) wereto be treated more favourably.
Furthermore, significant capacities were being licensed for the 2-wheeler segment.
The aftermath of Oil Crisis led to a steep rise in prices of the common goods, thereby
affecting economic well-being of the country. As a result, the growth of most of the
automobile segments slowed down over the next few years. The accompanying rise
in fuel prices resulted in a noticeable decline in the demand for already troubled
passenger car segment. Some relief came for the segment in1975 with the courts
judgement against the statutory price controls on passenger cars. Subsequently, the
informal price controls on 2-/3-wheelers were also removed. Meanwhile, the Fifth
FYP (1974-1979) was introduced in 1974. The plan outlays were kept at modest
levels and no new projects in the industrial sector were planned. With regard to the
automotive industry, the plan targeted an annual production of 60,000 CVs, 320,000
2-wheelers and 32,000 passenger cars by end of 1978-79 as against the actual
production of 42,900 CVs, 150,700 2-wheelers and 44,200 passenger cars in the
year 1973-74 (GOI 1974).
As is evident from the Fifth FYP, the government concentrated on the policy of
encouraging the growth of 2-wheeler segment from mid-1970s. This was done to
provide mobility to the countrys growing middle-class without incurring higher
petroleum consumption on cars. As a result, the period between 1976 and 1980 saw
new entries as well as diversification by the existing firms in the 2-wheeler segment.
Maharashtra Scooters entered into the production of scooters. Sundaram Clayton
and Majestic Autocommenced the production of mopeds. Bajaj Auto diversified into
the production of motorcycles with its indigenously developed models. Scooters India
also diversified into the production of 3-wheelers. As an exception, Sipani
Automobiles entered into the passenger car segment with a small car model.
From 1975 onwards, minor relaxations were being made to the licensing regulations.
For instance, since 1975 automatic growth rule was applicable to CVs, ancillaries
and tractors. According to this rule, an automatic capacity expansion of 5% per year
(25% in total for 5 years) was permitted over and above the 5%automatic growth
permitted under IDRA 1951.
Another relaxation that was made for non-MRTP and non-FERA automotive firms
producing CVs, tractors, ancillaries and scooters was the one that allowed expansion
without limit.
However, these relaxations were subject to certain conditions. The product in
consideration could not be the one reserved for the small-scale sector. Moreover,the
requirements of imported machinery and raw-materials/componentsarising out of the
undertaken expansion required additional clearances. Further, in 1978 the
government also dismantled some of its stricter controls on foreign equity
collaborations.
Thus, this phase of the development of Indian automotive industry witnessed
tightening of regulations with the introduction of MRTP and FERA. The
macroeconomic setbacks along with populist policies undermined the development
of passenger car segment. The average annual growth rate of this segment over the
period 1966 to 1979 was quite low at 2.8%.
On the other hand, government policies to encourage the development of non-luxury
segment helped it to sustain growth through otherwise difficult times. The CVs and
the UVs segment saw moderate average annual growth rates of3.3% and 3.8%
respectively over this phase. The average annual growth rates over the same period
for 2-wheeler and 3-wheeler segment were relatively high at 13.5% and 26.2%
respectively. Nevertheless, all the segments within the industry experienced
noticeable year-to-year fluctuations in demand within this phase.
The Indian automotive industry produced 275,624 2-wheelers, 59,700 CVs, 29,235
cars, 16,947 3-wheelers and 12,340 UVs in the year 1979 .
The government policy towards the auto-component industry remained more or less
the same.
With minor amendments to the list, the auto-components reserved for the exclusive
manufacture by small-scale sector continued to persist. The protective rates of tariff
on components were preserved. By early 1970s substantial progress had been
made in the indigenisation of components and the domestic content of almost all
automobiles was above 90% (Narayana 1989). Lastly, the automotive industry in cooperation with the Ministry of Industry established the Automotive Research
Association India in 1966 for supporting R&D efforts within the industry.
automatic growth and regularisation of excess capacity schemes of the late 1970s.
With the addition of all the automotive segments to Appendix-I list by 1982, the
usage of automatic growth rule became easier for MRTP/FERA companies. Further,
the government in 1980 allowed non-MRTP and nonFERA companies in CV and 2/3-wheeler segment to automatically expand up to their installed capacities so as to
achieve efficient scale. This was renewed in 1982 as reendorsement of capacity up
to 133%of the best production of the previous five years, given that the capacity
utilisation had reached 94% (reduced to 84% in 1986) and was available to
Appendix-I MRTP/FERA companies as well. For an initial period, the government
also lowered the custom duty on import of components for fuel-efficient vehicles.
However, in 1984 all automotive segments were brought under Schedule IV, i.e.
industries requiring special regulation, on the grounds of raw material shortage,
likelihood of high pollution, or infrastructure constraints (Kathuria 1996, p. 89). This
meant that the aforementioned relaxations were to an extent nullified with the
requirement of an additional clearance under Schedule IV for substantial expansion.
New entry offirms and JVs with foreign collaborators that was witnessed in the period
1982-84 was virtually banned for the rest of the phase, except inthe autocomponents segment. Few more relaxations for the automotive industry made their
way through the appointment of Mr. Rajiv Gandhi as the ninth Prime Minister of India
in October 1984.
The fresh economic ideology and political perspective of the new Prime Minister was
reflected in the Seventh FYP (1985-1990), with itsfocus on exports and liberalisation
in the industrial production. Subsequently, in January 1985 the government
announced a policy of broad-banding encompassing the entire industrial sectorthat
allows manufacturers to use the installed machinery flexibly. Under broad-banding
scheme, the production licenses were issued for a broader product group as
opposedto the single-product licenses issued previously. The manufacturers were
not required to take any additional clearances for diversifying within their product
groups as long as the diversification did not necessitate any new investment in
machinery. The scheme was conceived to liberalise production by providing the
manufacturers with freedom to select the right product mix to be produced, and
thereby make optimal use of their capital investments.
In 1985, the broad-banding grouped passenger cars, CVs and UVs into one product
group named on-road four-wheelers. This entailed that any firm operational in the
aforementioned segments, within its overall capacity, had the opportunity to diversify
into any other segment within the group or vary the product mix over the segments
based on the demand conditions.
TELCO seized this opportunity by diversifying into the LCV segment with an
indigenously developed model in 1986. It also entered into the UV segment with its
pick-up truck in 1988.
Similarly, broad-banding grouped all the 2-wheelers up to 350cc engine capacity into
one group, which was later expanded in 1986 to include 3-wheelers. A similar broadbanding group was announced for automobile ancillaries aswell. In addition to broadbanding policy, Mr. Rajiv Gandhis regime also brought someother relaxations. From
May 1985, all the automobile and component manufacturers were exempted from
sections 21 and 22 of the MRTP act, which meant that the large industrial houses
were no longer required to take MRTP approvals.
In 1986, minimum economic scalescheme was announced under which the
government promised to actively encourage firms to achieve economic scale of
operations.
By the end of this phase, the limited de-regulation drive for industrial production
came to a halt due to the growing opposition from within the ruling party. In fact, Mr.
Rajiv Gandhi was compelled to undo some of the newly introduced modifications.
Nevertheless, the limited liberalisation that took place during this phase had a
considerable impact on the development of Indias automotive industry. The
modernisation programme of early 1980s intensified competition in the industry and
upgraded its technological base. The relaxations in the form of new entries, foreign
collaborations, automaticgrowth, re-endorsement of capacity, liberal MRTP/FERA
implementations and broad-banding facilitated in driving the change. The drive for
indigenisation continued during this phasewith all the vehicle and component JVs
required under the phased manufacturing programme to achieve 95% indigenisation
within five years of start of production. Indian consumers were given a free choice to
select among a higher variety of better-technology and fuel-efficient vehicles,
including luxuries. Passenger cars, a non-priority sector in1970s, came to be
identified asa core industry of national importance. The production of cars in the year
1989-90 at 179,278 exceeded that of CVs at 125,051 (refer Appendix A). The
production of 2-wheelers, 3-wheelers and UVs in the same year was 1,731,686,
83,752 and 44,309 respectively (refer Appendix A).
The auto-components segment alsounderwent considerable changes during the
second-half of this phase. The influx of foreign collaborations in the vehicles
segment, and thereby ingress of diverse product designs necessitated technological
upgrade from the side of auto-component manufacturers as well. As a result, many
domestic manufacturersentered into collaborations with foreign players. Moreover,
the foreign collaborators in the vehicles segment were followed by their local
suppliers who also entered the Indian market forging collaborations with the
domestic players. Thus, this was the time wherein the Japanese best practices made
their way into the Indian automotive industry. Consequently, the insistence for higher
quality components and timely deliveries, coupled with the heterogeneous demand
created unrest within the segment. Additionally, the Motor Vehicles Act passed in
1988 mandated the components used in the Indian vehicles to becertified under the
standards laid by Bureau of Indian Standards.
The components segment was given due attention since its development was
considered critical for the modernisation drive. The relaxations pertaining to relatively
liberal entry, growth and imports of foreign supplies were also available to the autocomponents segment.
The broad-banding product categories for auto-components were quite large,
enabling sufficient diversification by the existent players. In March 1985, the autocomponent segment was delicensed under IDRA for non-MRTP and non-FERA
companies with the condition that the firm was not located within urban or municipal
limits. Further, for MRTP/FERA companies the delicensing was applicable for
investment in backward areas. Encouragement to the small-scale sector was also
continued during this phase with the government raising the investment limit INR 1
million to INR 2 million for small scale units and INR 1.5 million to INR 2.5 million for
ancillary units (GOI 2008b).
The export performance of the automotive industry between the years 1951 and
1980 had been mediocre. Being a net user of foreign exchange, the automotive
industry was given much attention during the sixth plan period for improving its
export performance.
Accordingly, various export promotion measures were implemented by the
government. As a consequence, the export of Indian automotive industry nearly
doubled from INR 1561 million in 1984-85 to INR 3041 million in 1988-89 (ACMA
1991-92 cited after Chugan 1995).
Amendment of MRTP Act to remove the threshold limit of assets for MRTP
companies and large dominant undertakings, which effectively eliminated the need
for such companies to obtain MRTP clearances any further.
Review of the existing portfolio of publicinvestments with greater realism and
progressive disinvestment in public enterprises where private sector had developed
sufficient expertise and resources.
The sweeping changes in overall industrial policy had a significant impact on the
development course of Indias automotive industry. Though a few liberalisation
measures had already been introduced in 1980s, the policy reforms initiated in 1991
were much more comprehensive. All the vehicles segment (except passenger cars)
and the auto-component segment were delicensed in July 1991. The passenger car
segment was delicensed in May 1993. Along with abolition of the need for MRTP
clearances, this meant that the automotive firms were free to enter, expand,
diversify, merge or acquire based on their commercial judgements. The liberalisation
concerning foreign investmentencouraged several global players to enter into the
Indian market establishing JVs with domestic players. While FDI upto 51% was
allowed on an automatic basis,the same for more than 51% required governmental
clearances which were approved on a case-to-case basis depending upon the
projected exports, sophistication of technology brought in, etc. The phased
manufacturing programme requiring time-bound indigenisation was dropped in 1991
for the new units and in 1994 for the existing units.
While the aforementioned structural
reforms benefited the automotive industry over a longer term, the short-term
stabilisation measures adopted by the government to counter the crisis adversely
affected the industrys growth. As animmediate measure to improve the countrys
balance-of-payments situation, the governmentdiscouraged the consumption of oil
by imposing a surcharge of 25% on petroleum products. It also imposed a heavy
excise duty on selling price of all the automobiles. For instance, the excise duty on
passenger cars was increased from 42% to 53% in August 1990, and further raised
to 66% in July 1991 (Sumantran et al. 1993). Additionally, in order to reduce the
trade deficit the rupee was devalued and the auxiliary customs duty was increased.
The escalation of the yen-rupee exchange rate combined with the increased costs of
production of the newer import-dependent components undermined the performance
of firms with recent Japanese collaborations. On the demand side, the overall hike in
fuel prices and the credit squeeze to curb the inflation stifled the demand for
automobiles in the country. The change in allowed rate of depreciation from 33% to
20% was an additional discouragementfor the market (Sumantran et al. 1993). The
automotive industry, which saw a negative annual growth rate of 10.1% in the
vehicles segment in the year 1991-92, recovered in the subsequent years of the
post-reforms period.
2002). The policy also planned to increase the allocations to the automotive cess
fund created for R&D of automotive industry and to expand the scope of activities
covered under it. Auto Policy 2002 also stressed upon strengthening the
environmental and safety standards.
The policies laid by Auto Policy 2002 have continued to apply till date
with minor modifications. Within a decade of introducingstructural reforms into the
country, the production of Indias automotive industry had increased from 1,603,736
2-wheelers, 165,309 cars, 144,248 CVs, 76,750 3-wheelers and 31,530 UVs in
1991-92 to 4,271,327 2-wheelers, 564,052 cars, 162,508 CVs, 212,748 3wheelersand 105,667 UVs in 2001-02 (refer Appendix A). Along with reductions in
the overall tariff level to open up India for international trade, the government has
also progressively rationalised its domestic taxation structure to provide a fair
competition groundfor its domestic manufacturers against the international
competition. For instance, the excise duty on passenger cars has been brought
down from its peak rate of 66%in 1991-92 to 24% in 2008-09.
With regard to the import tariffs in the year 2008-09,
the custom duty on WTO-bound segments (CVs and autocomponents) has been
reduced to 10%, whereas that for the WTO-unbound segments (passenger cars,
MUVs and 2-/3-wheelers) has been 10% for CKD units and 60% for SKD/CBU form
(SIAM 2008g).
Thus, during this phase, the increasingly investor friendly
as well as liberal trade measures adopted by the government led to a momentous
increase in the number of foreign players active in the country. The dismantling of
licensing controls also encouraged the domestic players to undertake
entrepreneurial endeavours. This furthered competition within all the segments of the
automotive industry. The market for automotive vehicles in India, which had earlier
been virtually a sellers market, was transformed into a buyers market. The Indian
consumer benefited the most from the intensified competition, which brought his
requirements of a cost-effective,technologically-competent, fuel-efficient and reliable
means of transport into perspective. Strong macroeconomic base of demand growth
drivers along with convenient credit facilities have ensured rising demand for
vehicles in the country.
Hence, the bold attempt of the government inmaking a
major shift in its economic policy framework in early 1990s, along with its continued
support to the automotive industry has put the industry on a fast track of
development.
With regard to the auto-component segment, the phase witnessed the entry of
several foreign auto-component firms mainly following their global OEM customers
into the Indian market.
By the end of year 2000, all major global Tier-1suppliers had their presence in India.
The spurred competition on the home turf as well as the expanding domestic and
international market for their products, made the domesticauto-component producers
to upgrade their technology and management practices. Further, the cost-effective
and quality autocomponents produced in India are increasingly gaining acceptancein
international markets.
There is an increasing trend in the number ofIndian auto-component firms getting
integrated into the global supply chains of automobile and auto-component majors
worldwide. On the other side, the automobiles produced in India are increasingly
making their way to the foreign markets through either direct or indirectexports. Also,
the domestic automobile manufacturers are teaming up with foreign auto-component
firms for bringing out newvehicle models. Hence, such increased interaction and
interdependence between the Indian automotive firms and their foreign counterparts
is leading to globalisation of Indias automotive industry.
The competition in Indias automotive industry has become more intense with the
growing number of domestic and foreign firms operating in its automobile and autocomponent sectors. The liberalisation of automotive industry in early 1990s in
tandem with countrys favourable macroeconomic trends has contributed to such a
development. The entry of foreign firms into the industry has been further
encouraged by the advancements in Indias foreign investment and trade policies.
The rising trend offoreign direct investment (FDI) in Indias automotive industry
depicted in Figure 5 below testifies for this fact.
The automobile industry in India comprises a good balance of domestic as well as
foreign players. Appendix C provides a list of domestic and foreign automobile
manufacturers currently operating in India. As could be observed in the list, most of
the domestic firms were established in the pre-liberalisation period and are currently
operational in more than one vehicle segments. In case of foreign firms, the entries
into the Indian market were mainly observed after the year 1993. Firms like
Suzukiand Yamaha who had established joint ventures with Indian partners in the
pre-liberalisation period, acquired majority stake in their ventures subsequently.
Among different vehicle segments, the foreign players are predominantly
concentrated in the passenger car and CV segments. Thus, a good mix of seasoned
domestic players and renowned foreign players has rendered healthy competition in
the Indian automobile industry. The automobile models produced by the industry fill
up nearly all the price points addressing variedconsumer preferences, and thereby
further stimulating the industry growth.
The Indian auto-component industry comprises of around 500 firms in the organised
sector and more than 10,000 firms in the unorganised sector (GOI 2006a). The
diverse firms produce a comprehensive range of auto-components, which include
engine parts,drive transmission & steering parts, body & chassis parts, suspension &
braking parts,equipments and electrical parts amongst others (ACMA 2008a). In line
with the global trend, the auto-component industry in India has also undergone
tierisation, with Tier-1suppliers at the apex and unorganised players at the base of
the supply pyramid.
For meeting the present day challenges of lean and responsive supply, the autocomponent manufacturers in India work in close cooperation with their customers
both at home and abroad. The rising level of technological and management
capabilities among the Indian auto-component manufacturers have made such
collaboration possible.
Future of industry
Where It is headed?
The auto industry is constantly bringing us new technologies, whether
it be for safety, entertainment, usefulness or simply for pure innovation.
SOME inventions seem to make periodic leaps in progress. The car is
one of them. Twenty-five years elapsed between Karl Benz beginning small-scale
production of his original Motorwagen and the breakthrough, by Henry Ford and his
engineers in 1913, that turned the car into the ubiquitous, mass-market item that has
defined the modern urban landscape. By putting production of the Model T on
moving assembly lines set into the floor of his factory in Detroit, Ford drastically cut
the time needed to build it, and hence its cost. Thus began a revolution in personal
mobility. Almost a billion cars now roll along the worlds highways.[19]
19.http://www.economist.com/news/leaders/21576384-cars-have-already-changed-way-welive-they-are-likely-do-so-again-clean-safe-and-it
Today the car seems poised for another burst of evolution. One way in which it
is changing relates to its emissions. As emerging markets grow richer, legions of
new consumers are clamouring for their first set of wheels. For the whole world to
catch up with American levels of car ownership, the global fleet would have to
quadruple. Even a fraction of that growth would present fearsome challenges, from
congestion and the price of fuel to pollution and global warming.
Stricter regulations and smarter technology are making cars cleaner, more fuelefficient and safer than ever before. China, its cities choked in smog, is following
Europe in imposing curbs on emissions of noxious nitrogen oxides and fine soot
particles. Regulators in most big car markets are demanding deep cuts in the carbon
dioxide emitted from car exhausts. And carmakers are being remarkably inventive in
finding ways to comply.
Granted, battery-powered cars have disappointed. They remain expensive, lack
range and are sometimes dirtier than they lookfor example, if they run on
electricity from coal-fired power stations. But car companies are investing heavily in
other clean technologies. Future motorists will have a widening choice of superefficient petrol and diesel cars, hybrids (which switch between batteries and an
internal-combustion engine) and models that run on natural gas or hydrogen. As for
the purely electric car, its time will doubtless come.
Roadblocks ahead[21]
Some carmakers think this vision of the future is (as Henry Ford once said of history)
bunk. People will be too terrified to hurtle down the motorway in a vehicle they do not
control: computers crash, dont they? Carmakers whose self-driving technology is
implicated in accidents might face ruinously expensive lawsuits, and be put off
continuing to develop it.
Yet many people already travel, unwittingly, on planes and trains that no longer need
human drivers. As with those technologies, the shift towards driverless cars is taking
place gradually. The cars software will learn the tricks that humans use to avoid
hazards: for example, braking when a ball bounces into the road, because a child
may be chasing it. Googles self-driving cars have already clocked up over
700,000km, more than many humans ever drive; and everything they learn will
become available to every other car using the software. As for the liability issue, the
law should be changed to make sure that when cases arise, the courts take into
account the overall safety benefits of self-driving technology.
If the notion that the driverless car is round the corner sounds far-fetched, remember
that TV and heavier-than-air flying machines once did, too. One day people may
wonder why earlier generations ever entrusted machines as dangerous as cars to
operators as fallible as humans.
Many new car technologies are either specifically built for safety or at least have
some sort of safety focus to them. Some of the latest car innovations we've found
are some truly exciting technologies that could revolutionize not just the automotive
industry but human transportation in general.
Scientists and researchers are developing technologies that would
revolutionize our automobile from a grocery getter to a perfect vehicle. New
Technologies are incessantly being incorporated in the automobile.
Vehicle technology can improve the transport system in many ways, but specifically
in the context of this paper, it has the potential to reduce the number of accidents on
the roads.
There are a vast number of new technologies available on new vehicles or top of the
range vehicles that will become more common in future, there are also many more
technologies being researched. All of which are designed to alert, assist, or take
control from, the driver, and all respond to different dangers at different intervals
before an accident occurs.
It is important that the most beneficial of these technologies are identified at an early
stage and emphasis is put on introducing them as early as possible. This emphasis
must consist of; ensuring that resources are dedicated towards developing the
technology and validating its safety effects, promoting the safety benefits of the
technology to the public in the wider context of road safety, and ensuring early take
up of the technology where possible.
The success of this emphasis is dependant upon developing vehicle safety policy as
much as it is the engineering aspects of vehicle safety. A policy framework that
identifies how and to what extent technology will play a part in meeting targets in the
larger road safety strategy and indeed national transport strategy needs to be in
place.
All stakeholders need to take a proactive approach to the inclusion of vehicle
technology in road safety, and indeed health and safety, policies. It is important that
road safety policies and strategies develop with technology.
We have recently seen an example of how early versions of priority technology can
support road safety enforcement and education activities. The Road Safety Act
allows courts to use alcolocks as part of the sentence following a drink-drive
conviction.
Pro-active fleet managers who are looking to reduce the risk to their employees as
part of a strategy to manage occupational road risk within an organisations health
and safety arrangements are also well placed to advocate emerging technology.
Another main point that this policy should highlight is that the safe use of vehicle
technology is dependant on the one key interaction that between the human and
the technology.
It is important that this is addressed from both sides by ensuring that the controls
are intuitive for drivers, and that the drivers are properly trained in the use of new
vehicle technology.
The issue of making sure that drivers receive appropriate training for the use on invehicle equipment is crucial, as the use of some of the new equipment will require
fundamentally different skills to the ones currently learnt by drivers during the driving
test. It is important that drivers are encouraged to attend refresher courses and
courses suitably designed to help prepare a driver for the new ways of interacting
with vehicles, and that businesses address this requirement for their employees to
learn new skills.
In the long term, there must be an emphasis on how to use these new technologies
safely within the driving test. Ensuring that the driver has the appropriate training for
the equipment will also be important when hiring cars, and indeed when cars are
bought and sold second hand.
In future, these training issues will be more fundamental to the usability, and indeed
benefits of vehicle technology. Up until recently, vehicle safety technology has
required no great amount of interaction from the driver. Passive safety where the
greatest benefit has been gained works to prevent driver injury, with only the
requirement that a driver buckles the seat belt. Braking and stability systems assist
drivers actions and limit the consequences of driver error by magnifying the
effectiveness of the drivers manoeuvre, a driver in a vehicle with ESC should still
respond to a hazard in the same way whether it is fitted or not.
Cars are changing, and in order to get the best out of any new technology, we all
need to understand how.
Hydrogen Cars[22]
Cars that run on hydrogen and exhaust only water vapor are emerging to
challenge electric vehicles as the world's transportation of the future.
At auto shows on two continents Wednesday, three automakers unveiled hydrogen
fuel cell vehicles to be delivered to the general public as early as next spring.
Hyundai Motor Co. will be the first to the mass market in the U.S. It unveiled a
hydrogen-powered Tucson small SUV at the Los Angeles Auto Show that will be
leased to consumers. Honda also revealed plans in Los Angeles for a car due out in
2015. Earlier, at the Tokyo Motor Show, Toyota promised a mass-produced fuel cell
car by 2015 in Japan and 2016 in the U.S.
Hydrogen cars are appealing because unlike electric vehicles, they have the range
of a typical gasoline car and can be refueled quickly. Experts say the industry also
has overcome safety and reliability concerns that have hindered distribution in the
past.
But hydrogen cars still have a glaring downside refueling stations are scarce, and
costly to build.
Consumers can expect costs in line with some luxury models. In Tokyo, Toyota
promised a price of $50,000 to $100,000, and as close to the lower figure as
possible. That's comparable to its Lexus luxury sedans, but a range that makes the
once space-age experiment with fuel cells more credible.
Hyundai said it will lease the Tucsons for $499 per month for three years with $3,000
down. And Hyundai is offering to pay the hydrogen and maintenance costs. The
company will start leasing in the Los Angeles area, where most of the state's nine
fueling stations are located. California lawmakers have allocated $100 million to build
100 more. Honda wouldn't reveal any pricing details.
Even as battery-powered and hybrid-electric cars took on conventional gasoline
models in the past decade, automakers continued research into hydrogen fuel cells,
said Paul Mutolo, director of external partnerships for the Cornell University Energy
Materials Center. Manufacturers now are limited only by costs and the lack of filling
stations, he said.
Hydrogen fuel cells use a complex chemical process to separate electrons and
protons in hydrogen gas molecules. The electrons move toward a positive pole, and
the movement creates electricity. That powers a car's electric motor, which turns the
wheels.
Since the hydrogen isn't burned, there's no pollution. Instead, oxygen also is pumped
into the system, and when it meets the hydrogen ions and electrons, that creates
water and heat. The only byproduct is water. A fuel cell produces only about one volt
of electricity, so many are stacked to generate enough juice.
Hydrogen costs as little as $3 for an amount needed to power a car the same
distance as a gallon of gasoline.Manufacturers likely will lose money on hydrogen
cars at first, but costs will decrease as precious metals are reduced in the fuel cells.
Toyota's fuel cell car is a "concept" model called FCV that looks similar to the Prius
gas-electric hybrid.Honda, which has leased about two-dozen fuel cell cars since
2005, took the wraps off a futuristic-looking FCEV concept vehicle in Los Angeles. It
shows the style of a 300-mile range fuel cell car that will be marketed in the U.S. and
Japan in 2015.
It is believed that fuel cells will power the next generation of cars, appealing to
affluent, environmentally conscious customers because affordable battery
technology has not advanced enough.
But skeptics say hydrogen fueling stations are more expensive than electric car
charging stations, partly because electricity is almost everywhere and new and safe
ways for producing, storing and transferring hydrogen will be needed.
20.http://www.rospa.com/roadsafety/policy/carsinthefuture/conclusion.aspx
21.http://www.popularmechanics.com/cars/news/industry/sneak-peek-at-the-future-of-in-carinformation-systems#slide-1
22.http://www.huffingtonpost.com/2013/11/21/hydrogen-cars-la-auto-show_n_4317569.html
Solar Power[23]
Technology to efficiently use solar energy to drive our car has been underwent for
quite some time. Recents advancements in solar cell would act as a boom for the
use of this technology in cars. Solar panels can charge the battery, power the air
conditioner or the infotainment system as long as it's sunny. It's a great way to
improve your mileage without sacrificing performance.
Solar cars depend on PV cells to convert sunlight into electricity to drive electric
motors. Unlike solar thermal energy which converts solar energy to heat, PV cells
directly convert sunlight into electricity.
The design of a solar car is severely limited by the amount of energy input into the
car. Solar cars are often fitted with gauges and/or wireless telemetry, to carefully
monitor the car's energy consumption, solar energy capture and other parameters.
Wireless telemetry is typically preferred as it frees the driver to concentrate on
driving, which can be dangerous in such a small, lightweight car.The Solar Electric
Vehicle system was designed and engineered as an easy to install (2 to 3 hours)
integrated accessory system with a custom molded low profile solar module,
supplemental battery pack and a proven charge controlling system.
As an alternative, a battery-powered electric vehicle may use a solar array to
recharge; the array may be connected to the general electrical distribution grid.
Even the best solar cells can only collect limited power and energy over the area
of a car's surface. This limits solar cars to ultralight composite bodies to save weight.
Solar cars lack the safety and convenience features of conventional vehicles.
23.http://dieoff.org/page84.htm
Solar buses[24,25]
Solar buses are propulsed by solar energy, all or part of which is collected from
stationary solar panel installations. Solar buses are to be distinguished from
conventional buses in which electric functions of the bus such as lighting, heating or
air-conditioning, but not the propulsion itself, are fed by solar energy. Such systems
are more widespread as they allow bus companies to meet specific regulations
The Tindo bus is a 100% solar bus that operates as free public transportservice
in Adelaide City as an initiative of the City Council.[2] Bus services which use electric
buses that are partially powered by solar panels installed on the bus roof, intended to
reduce energy consumption and to prolong the life cycle of the rechargable battery of
the electric bus, have been put in place in China.
24.http://www.ecogeek.org/content/view/1245/
25.http://naftcenews.wvu.edu/naftc_enews/2012/9/7/china-reveals-new-solar-buses
Conventional automobiles operate at about 15% efficiency. The rest of the energy
is lost to engine and drive-train inefficiencies and idling. Therefore, the potential to
improve fuel efficiency with advanced technologies is enormous.
Various technologies have been developed and utilized to increase the energy
efficiency of conventional cars or supplement them, resulting in energy savings.
Regenerative braking technology saves and stores energy for future use or as
back up power. When conventional brakes are used, 100% of the kinetic energy
lost is converted to thermal energy, and dissipated in the form of heat.
Regenerative braking recovers some of this energy to recharge the batteries in a
hybrid vehicle.
BMW's Turbosteamer concept uses energy from the exhaust gases of the
traditional Internal Combustion Engine (ICE) to power a steam engine which also
contributes power to the automobile (Hanlon, 2005). This can increase energy
efficiency by up to 15%.
Compressed air Hybrid is an engine made by researchers at Brunel
University in Britain, which forces highly compressed air into the engine, which
they claim reduces fuel consumption by 30%. [1]
Utilization of waste heat from D.W. as useful mechanical energy through exhaust
powered steam, stirling engines, thermal diodes, etc.[1]
Using computational fluid dynamics in the design stage can produce vehicles
which take significantly less energy to push through the air, a major consideration
at highway speeds. The Volkswagen 1-litre car and Aptera 2 Series are
examples of ultra-low-drag vehicles.
References
1.http://l3d.cs.colorado.edu/systems/agentsheets/new-vista/automobile/
2. http://inventors.about.com/library/weekly/aaautomobilenameorigin.htm
3.Chapter4http://shodhganga.inflibnet.ac.in/bitstream/10603/3722/13/13_chapter%204.pdf
4.B.M.Birla, THE AUTOMOBILE INDUSTRY IN INDIA , Hindustan Motors LTD
,1966.
5.http://inventors.about.com/library/weekly/aacarssteama.htm
6.http://www.infoplease.com/encyclopedia/science/automobile-developmentautomobile.html
7. http://su.wikipedia.org/wiki/Otomotif
8. http://shodhganga.inflibnet.ac.in/bitstream/10603/3722/13/13_chapter%204.pdf
9. Pg.9, THE AUTOMOBILE INDUSTRY IN INDIA,B.M.Birla,1966,Hindustan Motors
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Automotive Industry, Mahipat Ranawat and Rajnish Tiwari , March 2009 , Working
Paper No. 57
16.Influence of Government Policies on Industry Development: The Case of Indias
Automotive Industry, Mahipat Ranawat and Rajnish Tiwari , March 2009 , Working
Paper No. 57
17.Influence of Government Policies on Industry Development: The Case of Indias
Automotive Industry, Mahipat Ranawat and Rajnish Tiwari , March 2009 , Working
Paper No. 57
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Automotive Industry, Mahipat Ranawat and Rajnish Tiwari , March 2009 , Working
Paper No. 57
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