The Indian automotive industry has had a lot of potential to grow in the last 25 years. However, it has not lived up to that promise. Manish Varghese looks at the the outlook for the sector.

The industry has traditionally pinned its hopes on labour arbitrage and the unmatched demographic dividend to drive its growth. However, with the economy growing and inflation rates rising, labour costs have also shot up, which has offset that advantage to an extent. Lack of automation and investment in technology and talent has resulted in higher costs, lower efficiencies and stunted growth.

Read 'Gearing up to accelerate'

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