The recently-concluded Auto Expo, 11th in the series, attracted tremendous attention from global auto players and consumers. About 1,500 high-profile Indian and international companies from 25 countries took part. There were 12 concept vehicles introduced and 9 new ?green? automobiles debuted, among a total of 58 launches of new models?fast-forwarding the Indian automotive industry into the future, and highlighting the position of India as the world?s 7th largest auto industry.

It was not always so. When the first Auto Expo was held in 1986, the Indian automobile and automotive industry was just beginning to emerge from decades of stagnation, hobbled by licensing and import policies. In those days, consumers saved years for the vehicle of their dreams, waited long periods for delivery, and then often drove straight from showroom to workshop due to poor quality of the car or scooter.

In this tepid environment, Auto Expo was held to celebrate the silver jubilee of Society of Indian Automobile Manufacturers (SIAM) and Automobile Component Manufacturers? Association of India (ACMA)?two associations affiliated to the Confederation of Indian Industry (CII) ?jointly by all three organisations. It was a low-key domestic exhibition and elicited little excitement. People wondered why such an event would be held at all, given the small number of operators. It was testimony to the times that the next Auto Expo was held only 7 years later. And it was testimony to the sector?s potential that by 1998, it had become the largest such show in Asia.

The journey of the Indian auto sector took a decisive turn in 1981. Recognising that the industry, with substantial upstream and downstream linkages, could have a multiplier impact on output, growth and employment, the government enacted a bill to bring Maruti Udyog Limited into existence, with the partnership of Suzuki of Japan. The first Maruti 800 was rolled out shortly afterward, proving to be a game-changer for the industry.

The next stage was ushered in with the 1991 economic liberalisation process that spurred growth of the

industry to over 25% in the first few years. Later policy interventions, taken in consultation with industry associations, reduced duties on auto components and promoted FDI. The Auto Policy of 2002 aimed at building a globally competitive automotive industry with the target of emerging as a global hub for small, affordable passenger cars and a key centre for components. In 2006, the National Automotive Mission Plan was evolved to double contribution of the sector to GDP by 2016 and stressed exports of small cars and components.

The advent of multinational companies into India?s automotive scene transformed the way Indian companies did business. To begin with, manufacturers, for whom ?quality? was not in the lexicon, had to align to global standards of performance and efficiency. Maruti, under the leadership of public sector doyen Dr V Krishnamurthy, took the lead in driving this change by working with its suppliers. Dr Krishnamurthy headed CII?s newly-established National Committee on Quality and coined the slogan ?Quality to the Fore?. The first company to get ISO 9000 certification in India was an auto component company, Sundram Fasteners.

Automotive companies then began the journey up the competitiveness and quality ladder. ISO 9000 became the need of the hour for component suppliers and Maruti Udyog, with CII, started a cluster of SME suppliers for gaining this certification in the early 1990s. Sundaram Clayton was awarded the prestigious Deming Prize for Quality in 1998, the first outside Japan. Since then, quality has become the hallmark of the Indian automotive manufacturer.

The country today displays skills in all subsectors?passenger vehicles, multi-utility vehicles, medium and heavy transport, and three and two-wheelers. It is the world?s largest producer of tractors, second largest manufacturer of two-wheelers and Asia?s fourth largest passenger car market. In 2010-11, the industry produced almost 18mn vehicles, including close to 3mn passenger vehicles. India has carved a special niche for

itself in the small cars market and is fast scaling up exports.

Similarly, the component industry supplies domestic and overseas vehicle manufacturers as OEMs and lower tier suppliers of high repute. Investments and exports are growing rapidly, and the country is fast emerging as a global R&D hub.

In fact, the Indian auto industry represents the success of the model of partnership between government and industry associations. CII, SIAM and ACMA worked closely with the government in three key respects. First, they provided inputs to the government in policy formulation to assist a small industry to withstand sudden international competition. Second, they initiated key advisory and consultancy services to help companies align with global benchmarks of quality and efficiency. And third, they promoted international networking and brand-building to position India on the radar of international car-makers. The Auto Expo played a key role by providing a platform to showcase India?s growing proficiencies in the sector.

The author is chairman of the Auto Expo Steering Committee and past president of CII