Indian Auto Component Sector: A Perceptual Study of Small and Medium Enterprises

The automotive industry plays an important role in India’s economy by contributing a large share to the gross domestic product of the country and also by leading to growth in other sectors of the economy. This study aimed to highlight the select business practices, strengths, parameters influencing growth, and constraints of small and medium auto component units. The study included a sample of 50 auto component manufacturing units from North India. The study highlights that consistent quality, quick response system, low cost labor, competitive prices, availability of technical manpower are major strengths of respondent units. Further, the units reported important parameters such as adherence to delivery schedule and specified quality, new product development, cost reduction, and customization that influence the growth of this sector. The study, also, highlights important constraints as power shortage, non-availability of easy finance, and high cost of raw material restricting growth of this sector.