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Automotive industry has emerged as an important contribution to the GDP of India. The automotive industry is one of the most dynamic sectors in India. Rising incomes have increased the demand for cars and other vehicles, which is the main growth engine for the automotive industry in India. The introduction of different funding mechanisms and simple repayment plans also contributed to the growth of the automotive industry. The automotive sector in India, including the sub-components of the automotive industry and is one of the main economic sectors, with extensive links to upstream and downstream with other key sectors of the economy. It accounts for about 4% of India's gross domestic product (GDP) and 5% of industrial production in India.

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