The future of the automotive industry in India is in the process of being disrupted. Pollution, congestion, evolving business models and regulatory compliance are the top factors driving disruption in the automotive industry in India. New value chains are getting created amidst high levels of volatility in the market demand. Automotive OEMs and component companies will need to transform to succeed in this changing environment. A transformation in the structure, process and culture is needed to be agile, flexible and technology-enabled. India’s automotive industry contributes almost half of the country’s manufacturing GDP and contributes around seven to eight percent of India’s GDP. It gives jobs to more than three crore people.

Rapidly evolving customer needs: 

With increasing spend capacity, high levels of product awareness, rapidly evolving expectations and demand for personalised products & services, customers are taking the centre stage of the entire automotive ecosystem. Understanding changing customer needs and having the ability to serve them differentially will be a key competitive advantage.


Disruptive impact of technology: at three levels

  • On vehicles (e.g. electric, driverless, connected)
  • On supply chain and operations (digitalisation, robotics, 3-D printing) and
  • On business models (e.g. mobility as a service, vehicle sharing)

Automotive Industry participants must, therefore, reinvent themselves to find new ways of creating and delivering value in the future.


Israel has emerged as a hotbed of innovation in the automotive and mobility worlds as well as the broader business of making things. Automakers including Ford, BMW, Volkswagen and Hyundai have invested in Israeli companies. So, have suppliers such as Bosch, Denso and Continental. Among technology giants, Intel and Google have made the acquisition of Israeli startups part of their strategies to bolster their automotive and mobility investments.

Companies, interested to know more on the Automotive Technology in Israel, please contact the Trade and Economic Department at the Israeli Consulate General in Bengaluru. Contact: Ms. Kavitha S