Due to its deep forward and backward linkages with several key segments of the economy, automotive industry has a strong multiplier effect and is capable of being the driver of economic growth. The well-developed Indian automotive industry ably fulfils this catalytic role by producing a wide variety of vehicles. Indeed; the country boasts of the most competitive auto parts manufacturing industry in the world, with Indian automotive components being widely preferred by major automobile manufacturing companies. The auto component companies in India are contributing to the growth of this sector by providing technological, qualitative and low price automotive parts. As a result, today India has become the outsourcing hub for several global automobile manufacturers.
A four-fold increase in investments is anticipated, as much as 30 new automobiles factories, mergers and acquisitions are estimated to come up in next 8 years.