From Side Props to Key Actors: The Evolution of Indian Origin Commercial Vehicle Firms from Periphery to Prominence

Abstract

The Indian auto sector as a whole and the commercial vehicle industry in India have grown rapidly ever since inception in the 1920s. This study aimed to determine the patterns in the growth of the Indian origin firms in the commercial vehicle industry. Thus, by deconstructing the longitudinal timeline for the period ranging from 1928 to 2022 and developing case studies of six firms, we document their evolution process. The findings reveal the increasingly dominant role played by the firms and the trends associated with the industry. Specifically, it was observed that all strategic actions were prompted by a need to access technology or full regulatory environment policies by the incumbent firms and to enter a new country or a new segment in it by the international players. Furthermore, as the industry grew at a rapid rate and correspondingly did the power of the Indian origin firms, the mode of governance evolved from mere licensing to at times hostile acquisitions, suggesting a shift in the bargaining power. Observed also was the simultaneous pursuance of multiple modes of governance through multi-party strategic alliances, as opposed to earlier times where the options were pursued sequentially.