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This study analyses the determinants of competitiveness in the Indian auto industry, based on a field survey and a quantitative and econometric analysis of secondary data. Auto industry has grown impressively in India in the recent years in terms of production, sales and exports. However, higher effective rate of protection for automobile industry distorts resource allocation and investment pattern. We recommend that this has to be brought down in a phased manner, along with strengthening of the antidumping mechanism and improvements in infrastructure. Given the high and increasing share of materials in total production costs, policy measures to reduce these costs including indirect tax cuts are needed. Scaling up of autocomponent sector is needed, which requires better credit availability. Better policies are needed for R&D investments, design facilities, training, labour reforms, efficient energy use by small firms, more FDI, roadmap for emission standards, removal of interstate tax differences by introducing GST and strict implementation of rules of origin. We hope this book is useful for policymakers, researchers, management consultants and Auto Industry Experts in general.
⚠️ WARNING (California Proposition 65):
This product may contain chemicals known to the State of California to cause cancer,
birth defects, or other reproductive harm.
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