The Indian auto-components industry has experienced healthy growth over the years. Some of the factors attributable to this include: a buoyant end-user market, improved consumer sentiment and return of adequate liquidity in the financial system. The auto-components industry accounts for almost seven per cent of India’s Gross Domestic Product and employs as many as 19 million people. The increased purchasing power, large domestic market and an ever increasing development in infrastructure have made India a favourable destination for investment. The Indian auto-components industry can be broadly classified into the organised and unorganised sectors. The organised sector caters to the Original Equipment Manufacturers and consists of high-value precision instruments while the unorganised sector comprises low-valued products and caters mostly to the aftermarket category. The cumulative Foreign Direct Investment inflows into the Indian automobile industry during the period from April 2000 to December 2015 were recorded at US$ 14.32 billion. The Government of India’s Automotive Mission Plan has come a long way in ensuring growth for the sector. The rapidly globalising world is opening up newer avenues for the transportation industry, especially while it makes a shift towards electric, electronic and hybrid cars, which are deemed more efficient, safe and reliable modes of transportation. Over the next decade, this will lead to newer verticals and opportunities for auto-component manufacturers, who would need to adapt to the change by carrying out systematic research and development.