Abstract:

With globalization, production activities have re-distributed around the world in terms of resource and profitability, and some regions have become a centre of attraction in terms of various industries. One of the sectors in India’s new order has been the automotive industry. Indeed, India’s automotive industry has shown a huge growth in the last fifteen years. Today, the country is the fourth world in automotive production and the seventh world in commercial vehicle production. The automotive sector is one of the key indicators of India’s economic growth. The automotive industry is back and forward in the economy and its ties with the manufacturing industry are strong. This sector has a huge impact on economic growth. India is planning to produce small, fuel-saving, low-cost cars taking into account the country’s dynamics and the world’s demand structure and is already emerging as a major compact car manufacturer in the global car production network. The main reasons for India’s being an important automotive production center include the policies that the state applies towards the automotive industry, the fact that labour is primarily the cheap production factors, some historical and geographical reasons, the increased domestic demand for automotive due to the population and economic growth. The aim of this study is to explore the automotive industry in India and to identify the importance of government policies in developments in the automotive industry. The study will be examining the location of motor vehicles within the national automotive industry, commercial vehicles are out of scope.

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