The growth in the automobile market subsequently boosted the expansion of the automotive component industry in India. The industry is a substantial contributor to the country’s gross domestic product (GDP) and is responsible for generating large-scale employment. Apart from the demand from domestic automobile manufacturers, the entry of a large number of foreign players in the market has also led to increased growth of the automotive components industry. However, the recent economic slowdown has led to a drop in the demand for vehicles in India that has, in turn, adversely affected the automotive components sector. Lack of quality infrastructure and increase in prices of raw materials are other factors that continue to be hurdles in the growth path of this important ancillary industry. The industry also needs to be more organised, as its current highly fragmented nature leads to issues with pricing and customer satisfaction. Hide this