From a humble origin as a ‘horseless carriage’ manufacturing industry dating back to
1890s, the global automobile industry of 2006 has come a long way emerging as market leader in
manufacturing activity, providing employment to one in seven people, either directly or indirectly.
Hailed as the ‘industry of industries’ by the Management Specialist, Peter Drucker, the
automobile industry (US) set standards in manufacturing activity by contributing mass production
techniques during early 1910s. The Japanese soon followed by offering lean production
techniques in the 1970s. Riding high on economical revival in many developing countries in Asia
and Europe, the industry’s global output touched 64.6 million vehicles in 2005. But with a
downward slide in market share, the Big Three was fast losing their dominant position to Toyota,
Honda, and Nissan, thereby setting the ground for the emergence of New Six. Meanwhile UK,
served as the single largest customer for European auto-makers. Japanese players were the
leaders in the light vehicle market and hybrid market. China and India attracted the attention of
global auto-makers, vying for setting up a cost-effective export base for meeting the demand from
Asian markets. Despite government controls, Chinese market boasted of sales of more than 2.7
million commercial vehicles in 2004. With reports of highest growth in mobility in the world at 3%
per annum, further surge in demand was anticipated from Chinese market. A booming economy
and a low interest regime helped India to make its mark in the automobile sector in 2004, with
sales figures exceeding more than 1 million in the passenger car segment for the first time. The
sale of commercial vehicles showed a record growth of 29% over 2003. Foreign auto-makers
such as Mercedes Benz, Volkswagen Group, General Motors, Honda, Toyota, Ford, Fiat and
Mitsubishi were all making a bee-line to set up their manufacturing units in India to tap the
growing demand.