Automobile industry is a symbol of technical marvel by human kind. The automobile
industry referred as “the industry of industries” around the world has continuously
invented and reinvented itself, always driven by innovation. During the last two
decades, the automobile industry has been a bright spot in India’s progress and
has become one of the largest manufacturing sectors in India. During the past few
years, the production and management systems in the Indian automobile industry
have been revolutionized. One of the major changes in the industry has been the
opening up and growth of several emerging markets. The delicensing of the sector
and the subsequent opening up of 100 per cent Foreign Direct Investment (FDI)
through the automatic route marked the beginning of a new era for the Indian
automobile industry. However, the industry is now facing new and pressing
challenges. Globalisation, digitalisation, changing consumer preferences and
increasing competition are changing the face of the industry. The purpose of this
paper is to present a short overview of the automobile industry in India and mention
challenges facing the industry. In this context, several strategic steps have been
discussed which will enable the automobile firms in India to enhance their
competitiveness and establish a strong foothold in the international market.

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