The Growth of the Indian Automobile Industry: Analysis of the Roles of Government Policy and Other Enabling Factors

Abstract

The automobile industry has been a major driver of India's economic growth and is also deeply embedded in the supply networks of many other countries. The Indian government has provided substantial aid to this sector, helping it grow and differentiate itself from India's other manufacturing sectors. This industry stands apart from others that make automobiles around the world because it caters primarily to the needs of the country's lower and moderate income citizens. What part growth-enabling factors like government policy and infrastructure played in the development of India's car and auto-parts industries. In 2017, India surpassed the United States to become the world's fourth largest auto market, and both local and foreign demand for cars manufactured in India is likely to rise in the coming years. In order to meet the demands of their customers in the future (such as the demand for electric vehicles), manufacturers are currently playing catch-up in terms of modernization, digitization, and automation.