For India this is one of the new sectors grown over the last decade. From a very low-key component supplier for its own domestic market has evolved into global market. It has attracted some of the world’s largest auto manufacturing companies to set up its base. Its own industry of supplying components has grown substantially with the growth of the auto industry.

India has also evolved as one of the biggest hub for research and development in this sector.

The Canadian automotive industry produces light duty vehicles — cars, vans, pickup trucks; heavy-duty vehicles - trucks, transit buses, school buses, military vehicles; and a wide range of parts, components, and systems used in vehicles of this nature.

Canada has the second lowest corporate tax rate among the world’s Top 10 automotive countries – falling from 19% to 15% by 2012, less than half the U.S. rate – and recent federal budgets provided over $1 billion in tax cuts for the sector. Canada has almost doubled its money in R&D spending in the motor vehicle.

India and Canada have possible potential to explore opportunities to engage with each other.