Explain How the Automobile Industry changed market forms from Monopoly to Duopoly to Oligopoly form Independence to present day
Dear Vibhav,
In the initial years of Independence, the manufacturing or industrial sector was in a dismal state due to the policies adopted by the British government and therefore, there were only a handful of industries in the automobile sector which was majorly dominated by Hindustan Motors. This company enjoyed the status of monopoly as it governed the prices and accordingly sold the products to a large consumer base. However, with time, when the planning and reforms were adopted done in India, the industrial sector started growing and so did the automobile sector. New companies entered the market and monopoly turned into duopoly with Hindustan Motors and Fiat being the major market holders. Then again, as a result of globalisation, new firms such as Toyota, General motors, Ford, Honda, etc. entered the automobile sector in India, and turned the duopoly into an oligopoly, wherein now these few firms hold the automobile industry together.
In the initial years of Independence, the manufacturing or industrial sector was in a dismal state due to the policies adopted by the British government and therefore, there were only a handful of industries in the automobile sector which was majorly dominated by Hindustan Motors. This company enjoyed the status of monopoly as it governed the prices and accordingly sold the products to a large consumer base. However, with time, when the planning and reforms were adopted done in India, the industrial sector started growing and so did the automobile sector. New companies entered the market and monopoly turned into duopoly with Hindustan Motors and Fiat being the major market holders. Then again, as a result of globalisation, new firms such as Toyota, General motors, Ford, Honda, etc. entered the automobile sector in India, and turned the duopoly into an oligopoly, wherein now these few firms hold the automobile industry together.