Today, India is one of the largest automobile markets worldwide. From budget hatchbacks to luxury SUVs, dozens of brands of cars are all over the Indian roads. But have you ever wondered which was the first car company in India?
The answer takes us quite back in time when India was still establishing itself as an independent nation, and some visionary industrialists had the guts to dream of making cars in India.
Below is everything you need to know about the first automobile company in India, its history and how it became part of the automobile story of the country.
Which Was the First Car Company in India?
Hindustan Motors was the first car company in India which started in 1942 even before India gained its independence. The Birla Group, which is one of the most renowned industrial families in India founded it and located its manufacturing plant in Uttarpara West Bengal after the independence in 1948.
Hindustan Motors is credited with the historical distinction of being the first of its kind in the Indian automobile industry. It was linked to Indian motoring and the maker of one of the most recognizable cars that India ever saw, which was the Ambassador.
The Hind Motors website mentions: “Hindustan Motors Limited was established during the pre-Independence era at Port Okha in Gujarat. Operations were moved in 1948 to Uttarpara in district Hooghly, West Bengal, where the company began the production of the iconic Ambassador.”
Who was the Founder of Hindustan Motors?
Hindustan Motors was the brainchild of B.M. Birla of the famous Birla Group of Industries. The company was incorporated in 1942 with the idea of making sure that India would be self reliant in the production of automobiles.
Local manufacturing of cars was a groundbreaking idea when India was completely dependent on imported cars. The Birla Group had an opportunity to meet the increasing transportation needs in the country and the foundation was laid to what was to be the first and most well-known car company in India.
India's First Homegrown Car: The Ambassador
When one talks of Hindustan Motors, they automatically talk about the car that dominated Indian roads for almost fifty years which is the Ambassador.
The Ambassador was based on the Morris Oxford Series III of the United Kingdom and it was first produced in 1958. It was special since it was manufactured in India in totality and was therefore a national pride.
The Ambassador was the car that over the decades was used by the politicians, government officials and families in the country. It was suitably acclimatized to the Indian road conditions with its broad body, spacious interiors and rugged build.
What Happened to Hindustan Motors?
The process of liberalisation could not enable Hindustan Motors to survive the new competition despite its glorious legacy. The demand of the Ambassador kept on reducing as the newer, more fuel efficient and stylish cars kept flooding the Indian market.
Hindustan Motors ceased the production of the Ambassador in 2014 due to the losses and challenges in its operations. It was quite emotional to some of the Indians who had been raised with the car.
In 2017, Hindustan Motors sold the brand name of the Ambassador to a French motor group, Groupe PSA (since renamed Stellantis), at an approximate cost of ₹80 crore
Hindustan Motors became the first Indian automobile company and its contribution to Indian industrial and cultural history cannot be overstated. When India was still getting hold of independence, it took the daring of Hindustan Motors to put India on the automobile map of the world.
The Indian automobile history that began from the Ambassador of 1958, to electric cars of 2026 shows how far the nation has come.
