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When the first wheels rolled into India

December 23, 2008

Premier Automobiles Ltd (PAL) was promoted by Walchand Hirachand, in collaboration with the Chrysler Corporation of the US.

In March 1947, the company began assembling Chrysler products: Dodge, De Soto, and Plymouth cars and Dodge, De Soto and Fargo trucks. Indigenisation started in 1949 with the manufacture of radiators, mufflers, springs, propeller shafts, shock absorbers, etc. In 1950 PAL entered into a collaboration with Fiat, SpA of Italy and started assembly of Fiat 1100 cars.

In 1953, following the Tariff Commission report, the Government of India granted protection to the automobile industry, thus enabling Premier Automobiles to step up its manufacturing programme with full vigour and, in 1954, the first Indian-made 'Fiat 1100' cars rolled out.

The Industry Policy Resolution of 1948 announced that automobiles and tractors would be classified amongst industries which would be subject to regulation and control by the Central government. Nevertheless, their manufacture -- if progressively indigenised -- was encouraged.

With government intent on having a motor industry set up near each of the three major port cities, Ashok Motors, incorporated in September 1948, was established in Madras to assemble Austin cars and trucks in India.

In 1950, the company acquired the rights to manufacture Leyland vehicles in India. The name of the company was changed to Ashok Leyland Ltd in 1955.

Image: Ashok Leyland Ltd Light Specialist (R) and Field Artillery Tractor vehicles on displayed at the fifth Land and Naval Systems Defence Expo 2008 in New Delhi. | Photograph: REUTERS/B Mathur