Assessing Innovation Quotient (InQ) of Indian Auto Component Manufacturers

Innovation is an imperative in global industry today as a key tool for corporate sustainability. Post economic liberalization in 1991, India has witnessed a boom in Auto vehicle as well as component industry. This has further been accelerated and intensified in last 5 years (2002 onwards).Today many auto manufacturers globally have decided to set up their manufacturing and sourcing operations in India to realize low cost advantage of India. This has also brought intense competition for local players, which are expanding and setting up their units outside India while at the same time global players are also setting up shops in India. This has made competitiveness an extremely important parameter for survival and growth. Indian companies are now exposed to manufacturing excellence techniques used globally.They need to scale up on innovations to remain competitive. This paper, through an empirical study identifies drivers of Innovation through a cross sector study. Further, it attempts to probe as to where does Indian auto component Industry stand on Innovation; what are the enablers and barriers of innovation and what strategy should the industry adopt to accelerate innovation