Tuesday, November 01, 2005

Standard Motor Products of India Ltd

Once upon a time in India there were only three car manufacturing industries. They were Ambassador in Calcutta, Fiat in Bombay and Standard Motors in Madras.

The first two are familiar with everyone now. A brief about Standard Motors Ltd

Standard Motor Products of India Ltd is the manufacturer of Standard 2000 car based on a Rover model which had a low market in England during 1960’s. Following the Standard 2000 model, Tata Motors introduced the Contessa Model which failed to tap the market previously captured by Standard 2000. Then Standard Motors introduced a commercial vehicle (Van) in the name “Standard’ which was a runaway success. Standard Motors remained a leader in the automobile sector then. This company started its operations from a low level and competed with the big players in the market.

Standard Motors then had 2000 employees in its rolls under the leadership of Mr. Karthik Narayanan who was considered as the visionary of the company. It was Karthik Narayanan who took the company into great heights.

This company is situated at Perungalathur along the Chennai-Trichy National Highway at an area of 57.84 acres. Most of the people crossing this long building - stretching up to half-a-kilometer do not know that as a place where once business was on upswing. Standard Motors was the first car manufacturer in Chennai, Tamilnadu; which is now called “Detroit of South India”.

Standard Motors is no more today. In the late 80's, the MA Chidambaram group took over the company and attempted to rope in foreign partners to resume production which had stopped due to political and internal problems, but to no avail.

Today the Madras High Court has cleared the sale of the landed property, plant, machinery and other assets of Standard Motors Limited for Rs. 154.10 crore.

The entire stretch of the company fascinates me and I can still visualize the splendor of the place at its presence. Standard Motors is a past glory to Perungalathur - the place where I live now…

20 comments:

Anonymous said...

Can anyone tell me why the Standard Motors were closed? What was teh political problem? Even today when I go from Chennai Airport to Trichy I see the long stretch of walls balckened due to the fungus and the fans of the factory just moving by the wind. Al glory of Chennai is lying there like a ghost... please someone reply...


Regards
Ibrahim
syed_29@hotmail.com

R R R said...

hi ibrahim,

very few know abt the political problem which hpnd there.. now, the whole place is bought by a property developer.. IT parks, multiplex n shopping mall is under construction...

good that u have an inquiry on that...

Anonymous said...

One of the "highlights" of Tamilnadu governments is the low value they give for what was Tamilnadu's pride. Standard 2000 was a revolution for its time. It is SAD and SHAME that the factory was sold for cheap purposes and closure had political reasons.

Tamilnadu governments are good in wasting government money in free electricity, free sarees etc. but do nothing for a car factory.

Yes the govt have got good name in attracting foreign companies, but why was this planned closure of an Indian company. DId they not have money which they now have to waste on free electricity and free sarees.

Regarding other infrastructure like airports, Tamilnadu is a POOR performer. The state has 4 operational airports for the last 3 decades. All the neighbouring states have caught on and have made big plans for building NEW airports.

Certain Tamilnadu needs some good government thats can think beyond renamings, statues and wasting public money in the name of free electricity.

Anonymous said...

when iam small boy i seen herald cars in our town,when i dreem to buy this small car but now older but no more standardherald car in road.very sad news.

Anonymous said...

i was studying in crescent school and whenever i return to my boarding school, the old walls and the rotating fans attracted me a lot ....but i didint know what that was and then suddenly i saw a board STANDARD MOTOR COMPANY ..then i came to know that they were the manufacturers of the standard 2000 cars ...if u people see a tamil movie named ABURVA SAGOTHARGAL starring KAMAL HASAN ...u ll b able to c the factory ...though the standard 2000 model was very appealing i think it didnt make it to the top...now recently when i went to trichy from chennai airport ...i was not able to c the walls ....it seems the old factory vanished and they were constructing something else ...eventhough the production stopped the place could have been restored for future generations to know that there was a company named standard 2000....it would have atleast looked like a monument ....now i am very sad that i am missing the old scenery ...if u agree with me ...pls send me the comments at my e mail amir_slot@yahoo.co.in

Anonymous said...

What happened to all the tooling equipment from the factory such as chassis jigs etc. I live in new Zealand and the herald was a popular little car here.

Anonymous said...

Hi
I am Raj my father was worked in this great standand motor car company.When he was working there
our family enjoyed more not only our family every employee worked they enjoyed.When the company closed i was studying 10th.I stopped my studies and gone to work.It was a struggling time.I finished my degree with IT- back ground.Most of family died because of proverty.I will promise one thing. If i open IT company or car company i will give first job to x standad motor employee family.Finally one thing i want to tell i.e., Our next genaration should not do this mistakes like this. (including politicians or business man.) Politicans are all sellfish.Very soon i will come in front of public may be a bussiness man or politicians.I want to do somthing for my people and my country.

Anonymous said...

I heard that Standard 2000 was a big threat to Sanjay Gandhi promoted Maruti Udyog's Maruti 800. Further, Standard 2000 car gave tough competition to Hindustan Motor's Contessa Classic. The Central Govt at that time & Birlas teamed up to screw Standard Motors by finding fault with the poor fuel consumption (about 6 kmpl) of the car. It was the time around 1990-91 that the Gulf War was in full swing and fuel was rationed. They said the country cannot afford to have fuel-guzzling cars like Standard 2000 and and the Govt banned the car production. M A Chidambaram (of SPIC Group) who bought the company from Mr Karthik Narayanan (both were regulars at the Guindy Race Course) was running the company (it was very prestigious to own a car factory) tried to demonstrate an improved version of the engine's fuel economy but cut no ice with the Govt who were determined to shut down the factory. Also, the local govt gave lots of trouble to the company by propping up labor union problems (the usual wage/bonus fights). With both the Govt and its labor against the company, MAC's son, A C Muthiah chose to shut down the company never to open again. And the rest, as you know, is history! This is the real conspiracy story of how this company became defunct. I heard it first hand from my Dad who worked with SPIC for long.

Anonymous said...

HM contessa manufactured by tata motors?? and it failed??
And standard 2000 had captured the market more than contessa??
Get your facts right buddy.

Standard 2000 was based on Rover SD1 of England which was quite a hit. It came with V8 engine and was quite powerfull. even though, STAMPRO brought in all the tools from UK, it didnt fit in the original V8 engine, instead went for a big goof up by plonking a 1950 vanguard 6 cyl engine which was used in their standard 20 vans. coupled to that made the gear box & rear axle assembly locally. Hence, you got a fine looking car with underpowered engine, gear box crying for help.
This one was manufatured for 3 years from 1985-88.

Meanwhile, HM who manufactured contessa soon realised the gravity of the situation, plonked in a isuzu engine and ran the show successfully. If it was a faliure, then why the car was produced for 20 years?

R R R said...

hi Anon, thanks for the inputs...had written the post from the source of information i had heard.. anyways thanks for the facts..will get them corrected...

BOBBY JOHN said...

Thankyou all for the valuable information on Standard motors. I am a freelance automobile journalist now in the process of gathering information on defunct automobile companies in India. I have gathered information and some brochures on standard vans. But still some of my questions remains unanswered and if any one have any information on the following questions, please share with me.(1)Who were the owners/promoters of the company? (2)What was the reason that finally lead to the closure of the company? (3)I heard that Ashok Leyland had eyed the company but the takeover did not take place. Did the Standard Motors had any connection with Ashok Leyland? (4)Did the company manufactured engines and gearboxes themselves or outsourced? (5)What is the present state of the plant now? I heard that it has been bought by Sriram Group and they started an IT Park there.
I was planning to visit the place but if the factory buildings are demolished and machineries scrapped, no point in visiting

BOBBY JOHN said...

If you have any information regarding the question I posted, pls mail me to bobyjone@gmail.com or bobbyjohn_p@yahoo.com
Thanks

Sowmi said...

Hello Bobby,

I agree with the previous comments that was posted on Oct 14 by anonymous. My Father was working with M/S. Standard Motors as Company Official Photographer cum Supervisor at Trim Line Section where the car glass doors are fixed...As what we went thru, Rover gave a tough competition to the Leylands, HM & Tata who were in the launch of their products,. Since their political background was strong, Mr. Karthik Narayanan ., MD of this company and Son of Shri. Gopalakrishnan Iyer (Founder and Chairman of Standard Motors) couldnt cope up. The first issue was brought as the Mileage that was advertised was not correct as per the CBI inquiry and then it was blown up for various political reasons. AC Muthaih and P. Chidambaram with their influence tried to take over teh company, but could not retain the entire 3000 employees and announced Lay offs. This created a big fuss and ended the story of Standard Motors from the Automobile History.I still remember walking thru each and every dept of this company with my dad. The various film shootings that was held in this company.. I still have kamal's pic while shooting for Aboorva sagotharargal and Singara velan climax fight...The employees were treated like kings by Mr. Karthik Narayan and it was a decline to this dynasty all of a sudden which made most families shatter in Perungalathur who relocated just for their job in this company and developed Perungalathur.

R R R said...

Sowmi, thank you so much for the information..i think this history should live.. may be we should create a timeline for Standard Motors from all the facts we know..

Anonymous said...

Do you see any Standard 2000 there in Chennai or can share of any contact who still works on this model? I have been trying to get hold of a Standard 2000 for sometime now without much success.

Hansika Motwani said...

I have visited this blog first time and i got a lot of informative data from here which is quiet helpful for me indeed..



Packers and Movers Hasthinapuram 9380223600 Chennai

Unknown said...

I went through this blog only today.the co had a royal status with about 3000 employees. But when it was declared sick and subsequently closed what happened to the employees and public depositors? Was their salary paid in full? Was the deposits returned?

புரட்சிக்கவி said...

This is foul play by Tata as well. I heard that AC Muthaiah was funded by Tata to buy the share to close it. With all the gearbox problem standard cars are successful in market. Maruthi, Tata were unable to capture the markets so they made muthaiah purchased the company. How it was sold you know , the tamilnadu chairperson os SPIC wrote to Indian chairperson of SPIC - both are AC Muthaiah so the closure happened !!! A well framed corporate foul play to capture local Indian markets

Anonymous said...

Any chance to get contact of employee kirthivasan of standard motors chennai

Anonymous said...

Dmk only closed this company