Introduction - An Overview of Indian Automobile Sector The automobile 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 industry has currently achieved a turnover of Rs. 1.65 trillion. An investment of Rs. 50,000 crores has already been earned and additional Rs. 35,000 crore is in the conduit. This industry caters to labor utilization to the tune of 1.31 crore people with a contribution of 17% to indirect taxes. However, with all this in context, the Indian automobile industry is set to become one of the largest in the world. India already ranks second in the world in two-wheeler production, eleventh in passenger car production and thirteenth in the commercial vehicle segment. With its expanding industrial base and increasing domestic purchasing power, India has the potential to rank among the top five globally in all segments of automobile production. India is now a preferred location for automobile majors due to its pivotal role in manufacturing and supplying skilled labor at competitive costs. This situation is aggravated by the stagnation of the Western automobile market, which has led to a shift in capacity and a flow of capital towards the Indian side. The automobile components section is another offshoot of this industry with its turnover estimated at around 2.3 lakh crore in 2015. 16. Automobile manufacturers (Original Equipment Manufacturer) have a multiplier effect as they create spin-offs leading to creating suppliers of automobile components and other ancillaries, thereby leading to huge investments and indirect employment. Tamil Nadu - leader in India - Automobile production: in India, Tamil Nadu acts as a pioneer when it is located in the middle of paper near Chennai, which in turn would attract ancillary industries. Similarly, an automotive city has been proposed, which would handle prototyping, manufacturing and design. The automobile supplier parks and the Automotive Industrial Development Center (AIDC) would also bode well for the development of this industry. Weaknesses: However, even despite the generally favorable climate, certain pitfalls could be identified. These include a shortage of electricity accompanied by a worsening energy situation, the need for road and other infrastructure to keep pace with demand, deteriorating port conditions, weak protection intellectual property, a high tax rate, a risk-averse population with a low consumption rate and a high savings rate, little spending on research and development, monopolistic automobile component manufacturers in some high segments and oil prices.