Introduction: An Overview of Indian Automobile Industry The automotive industry in India is achieving significant growth at a rapid pace with the expansion of domestic and international markets over the last 15 years. This sector, currently, has achieved a turnover of Rs. 1,65,000 crores. An investment of Rs. 50,000 crore and another Rs. 35000 crore is in the pipeline. This sector involves the use of manpower of 1.31 million people with a contribution of 17% to indirect taxes. However, with all this in context, the Indian automotive industry is set to become one of the largest in the world. India already ranks second globally in two-wheeler production, eleventh in passenger car production and thirteenth in the commercial vehicle segment. As a result of expanding industrial base and increasing spending power at the domestic level, India has the potential to rank among the top five globally across all segments of automotive manufacturing. India is now a prime location for auto majors due to its crucial role in manufacturing and supplying skilled labor at competitive costs. This is compounded by the stagnation of the Western auto market which has led to the shift of capabilities and capital flow to the Indian side. The automotive components section is another offshoot of this sector with a turnover estimated at around 2.3 lakh crore in 2015- 16. Automotive OEMs (original equipment manufacturers) have a multiplier effect as they create ripples leading to creation of suppliers of automotive and other ancillary components, thus leading to huge investments and indirect employment. Tamil Nadu - Leader in India - Automobile Manufacturing: In India, Tamil Nadu acts as a pioneer when it is located in the middle of the paper near Chennai, which in turn would attract subsidiary industries. Likewise, an automotive city has been proposed that would take care of prototyping, manufacturing and designing. Auto supplier parks and automotive industrial development center (AIDC) would also augur well for the development of this sector. Weaknesses: However, even despite the whole existing favorable climate, there are some pitfalls that could be identified. These include: energy shortages with further worsening of the energy situation, need for roads and other infrastructure to keep up with demand, deterioration of port conditions, low protection of intellectual property, high tax rate, risk-averse population with low rate of consumption and high savings rate, low spending on research and development, monopolistic automotive component manufacturers in some segments, and high oil prices.