Automobile industry of any country is considered to be an indicator of its economic situation. This is due to the fact that mobility is one of the prime requirements of mankind. The same applies to Indian Automobile Industry also. Its performance can be correlated to the health of the economy. In the past three years when the economy grew well above 8%, the industry moved ahead at a fast clip [growth rate of 20% in year 2004~05]. All this could be attributed to the good economic scenario, favorable Govt. policies and leverage of the tremendous potential by car makers in India. Even in the present economic scenario when we are witnessing unprecedented global economic meltdown, Indian Automobile Industry is still expected to report positive growth. The entire supply chain consisting of raw material suppliers, logistic providers, components makers and system suppliers, provides a large number and quantity of parts to the car makers typically on Just-In-Time basis. The current scenario clearly suggests that there is a tremendous potential of becoming a global player for the auto component companies based in India.