This article examines the existing policy initiatives and identifies the requirements for a more comprehensive Auto Policy keeping in view the global visions of this very valuable manufacturing industry. Besides the entry of these companies into the global markets, the core competencies of this sector which could foster India as a manufacturing and sourcing hub have been examined. In the final analysis, the policy recommendations for creating global companies in terms of quality, price, and product innovations which require considerable investments in R&D have been put in the right perspective.

Way back in 1948, every Monday, the founder of Honda Motor Soichiro Honda would meet his 10 employees and exhort them to think globally. Today, in 2006 India is on the track of thinking globally. The auto industry is booming worldwide and India now needs to take advantage. Besides exploring opportunities outside, India will have to take radical measures to develop its home ground, instead of just being a breeding space for foreign companies. This has implications for indigenous car manufacturers like Tata Motors which will have to meet global ambitions in a more aggressive manner than what it is doing now though it has made every Indian proud by exporting the "all Indian" car "Tata Indica" to the UK to be driven under the "Rover" brand. Tata has proven the fact that Indian companies can identify changing customer needs and face the challenges of a changing technology across the globe.

The other success stories in the automobile sector relate to some of the bigger and more significant investments in the region, like the Tata Motor's buyout of Daewoo commercial vehicles ($100 mn Korea), Mahindra and Mahindra purchase of Jiangling Tractor Company ($8 mn China) and Bharat Forge's buyout of Federal Forge are some important milestones. The manufacturing companies to stay ahead will have to focus on cost competence and innovation combined with a global mindset.

Global CEO Magazine, Auto Industry in India, Global Markets, Research and Development, R&D, Tata Motors, Manufacturing Companies, Tata Daewoo Commercial vehicles, Foreign Companies, Indian Economy, Maruti Udyog Limited, Gross Domestic Products, GDP, Foreign Direct Investment, FDI, Auto Component Manufacturers Association , ACMA.