India has begun to attract significant attention as a manufacturing destination, following the ascent of China's manufacturing industry. The next wave of off-shoring is likely to take place in the skill-intensive industries and India has a clear advantage over other Asian countries in the manufacturing segment. The changing demographics of the developed and developing world are the other important factors in favour of India. In this context, this study focuses on the Indian automotive industry, which is termed as "sunrise sector" and plays a pioneering role in the Indian industry and contributed to 5% of the GDP during 2005-2006. Most of the global MNC original equipment manufacturers (OEMs) and their follow sourcing Tier- 1 suppliers have already established operations in India and are seriously exploring the options to increase the share of global sourcing from India in the near future.