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Hinayana ( Sanskrit: "inferior vehicle", Chinese:小乘) is a term coined by the Mahayana, which appeared publicly around the 1st century CE. There are differing views on the use and meaning of the term, both among scholars and within Buddhism.
Hinayana is used as a name to refer variously (to one or more of doctrines, traditions, practitioners or thoughts that are) generally concerned with the achievement of Nirvana as a Sravaka-Buddha or a Pratyeka-Buddha, as opposed to the achievement of liberation as a Samyaksam-Buddha. For those that view the term as being relevant to traditions, some hold the view that Hinayana is cognate with solely the Early Buddhist Schools, while others hold the view that Hinayana is also cognate with the modern Theravada tradition. Moreover, many hold that the term was coined to be purposely pejorative, while others do not.
From the outside the distinctions between these differing definitions would appear to be minimal, even trivial. However within Buddhism the differing interpretations of Hinayana have consequences that are sometimes quite far-reaching. It is primarily the interpretation of Hinayana as a tradition that has led to the most concern, especially as many people have seen the term as a slur against the schools of Nikaya Buddhism–schools that solely follow the sutras given by Buddha that admonish the practitioner to achieve Sravaka-Buddhahood.
Buddhism (both Nikaya and Mahayana traditions) accepts that there are three types of Buddha, and generally accept their definitions as follows:
It appears that the distinction between vehicles and paths arises in early Mahayana sutras, such as the Lotus Sutra, where it is stated that there is one path - the path to Nirvana -, but there are different vehicles. In this sense, the vehicles are described as representing the fruit of three types of Buddha found in Nikaya sutras, as mentioned above. For instance, in Chapter three of the Lotus Sutra, there is a parable of a father promising three carts to lure sons out of a burning building, where the goat-cart represents Sravaka-Buddhahood; the deer-cart, Pratyeka-Buddhahood; and the bullock-cart, Samyaksam-Buddhahood.
The Lotus Sutra (Ch.3) declares: "Though he (the Buddha) has power and fearlessness, he does no use them, but only by his wise tact does he remove and save all living creatures from the burning house of the triple world (a Buddhist term for Samsara), teaching the three vehicles: the sravaka-buddha, pratyeka-buddha, and samyaksam-buddha vehicles."
This quote tells us something more about early Mahayana views: That it is the vehicles that are taught as a method for journeying on the path to enlightenment. It is here that we can see the basis for term being used to indicate differences of doctrine.
The Lotus Sutra (Ch.3) continues: "Know this! All these three vehicles are praised by sages; [in them you will be] free and independent, without wanting to rely on anything else. [...]
If there are beings who [...] desire speedily to escape from the triple world and seek nirvana for themselves, these will have the vehicle named the 'sravakayana', just as some of those children come out of the house for the sake of a goat cart.
If there are beings who [...] seek self-gained wisdom, delighting in the tranquility of their individual goodness, these will have the vehicle named the 'pratyekayana', just as some of those children come out of the house for the sake of a deer cart.
If there are beings who [...] seek the wisdom without a teacher, who take pity on and comfort innumerable creatures, benefiting gods and men, and save all beings, these will have the vehicle named the 'mahayana', just as some of those children come out of the house for the sake of a goat cart."
The Sutra then continues, declaring that the bullock-cart is "supremely restful", implying that the goat-cart and the deer-cart are inferior to the bullock-cart. This is where we begin to see the terminological origins for the term Hinayana: The Sravakayana and the Pratyekayana as vehicles inferior to the superior bullock-cart of the Mahayana.
The Lotus Sutra therefore makes the distinction between the vehicles according to the type of Buddha that arises, and all Buddhists agree that a Samyaksam-Buddha is superior to a Sravaka-Buddha or a Pratyeka-Buddha, at least on the basis that only a Samyaksam-Buddha can teach the Dharma where (or when) it has not been taught before.