Demand for automobiles in India is one of the principal driving forces in that country’s economic growth. The industry provides jobs to literally millions of people throughout the direct, and indirect production chain.
I don’t doubt that. But unlike say, the US India lacks significant Oil reserves and unlike Brazil, India has little land to spare for bio-fuels.
China has built up a 20 year head start over India in forming strategic natural resources partnerships. With a rapidly rising middle class in Africa it is conceivable that India will be squeezed. That’s why India has to seriously consider alternatives to automobile driven economic growth - it may not be sustainable.