The Government of India’s auto policy seeks to establish a globally competitive Automotive Industry in India and to double its contribution to the economy by 2010.

Major policy objectives include:

• Exalt the sector as a lever of industrial growth and employment and to achieve a high degree of value addition in the country.
• Promote a globally competitive automotive industry and emerge as a global source for auto components.
• Establish an international hub for manufacturing small, affordable Passenger Cars and a key center manufacturing Tractors and Two Wheelers in the world.
• Ensure a balanced transition to open trade at a minimal risk to the Indian economy and local industry.
• Conduce incessant modernization of the industry and facilitate indigenous design, research and development.
• Steer India’s software industry into automotive technology.
• Assist development of vehicles propelled by alternate energy sources.
• Develop domestic safety and environmental standards at par with international standards.