“Made in India” is a phrase that evokes pride, especially in a country striving for self-reliance and industrial growth. In the automobile industry, this label carries both symbolic and practical weight. But what does it really mean for a car to be “Made in India”? Is it about assembling the car in India, using local parts, designing it here, or something more? Let’s explore the elements that define a truly Indian car.
Manufacturing vs Assembling
Many global car companies operate in India and sell vehicles assembled in Indian factories. However, assembly alone doesn’t make a car fully Indian. If most of the key components—like the engine, gearbox, electronics, or even the design—are imported from other countries, the product remains heavily dependent on foreign technologies and supply chains.
A car can be called truly “Made in India” only when a significant portion of its components are manufactured domestically, not just put together on Indian soil. This includes the engine, chassis, interior parts, electrical systems, and software. The goal is to reduce reliance on foreign inputs and promote the Indian automobile ecosystem.
Local Design and R&D
Design and engineering play a crucial role in determining how Indian a car is. A truly indigenous car is one that is designed and developed in India, keeping local road conditions, weather, fuel quality, and user preferences in mind. Indian consumers have unique needs: cars should handle both highways and narrow city roads, be fuel-efficient, and offer value-for-money features.
For example, Tata Motors and Mahindra & Mahindra have invested in in-house R&D centers and design studios. Cars like the Tata Nexon and Mahindra XUV700 were conceptualized, engineered, and tested in India, based on Indian consumer insights. This makes them far more Indian than models designed abroad and merely assembled here.
Sourcing from Indian Vendors
To support the claim of being “Made in India,” carmakers must rely heavily on Indian auto parts suppliers. India has a strong auto component industry, with companies producing everything from tires and batteries to braking systems and wiring harnesses. By sourcing these components locally, manufacturers support Indian businesses, create jobs, and reduce costs.
Moreover, local sourcing improves supply chain efficiency and allows faster delivery and servicing. This is particularly important in a price-sensitive market like India, where affordability and maintenance costs influence buying decisions.
Export Capability
A car made in India should also be export-worthy. If a car designed and built in India can meet international safety, emission, and performance standards, it proves the strength of Indian manufacturing. Many Indian-made cars, such as the Maruti Suzuki Swift and Hyundai i20 (made in Indian factories), are exported to Europe, Africa, and Latin America. This not only brings revenue but also strengthens India’s reputation as a global auto hub.
Government Policies and Support
Initiatives like ‘Make in India’ and the Production Linked Incentive (PLI) scheme for automobiles aim to boost domestic manufacturing. They encourage companies to invest in Indian plants, use local suppliers, and develop homegrown electric vehicle technologies. Such policies make it easier for Indian-made cars to compete globally while fulfilling local demands.
A truly “Made in India” car is more than just a product assembled within national borders. It is a vehicle designed, developed, manufactured, and supported by Indian minds, machines, and materials. It reflects Indian road conditions, suits Indian wallets, and upholds Indian talent.
As the auto industry evolves, and electric and connected vehicles become mainstream, there’s a real opportunity for India to lead with innovation and independence. A car that is truly Indian is not just a symbol of self-reliance—it’s a statement of confidence, capability, and commitment to the nation’s progress.