Mumbai, Nov. 19 -- India's automotive industry, which contributes 7.1 percent to the country's GDP, is set for a transformation driven by regulatory changes, including GST 2.0 reforms, customs duty adjustments and the Indo-Japan Free Trade Agreement (CEPA) said a whitepaper by Grant Thornton Bharat and the Indo-Japan Chamber of Commerce and Industry (IJCCI). It highlights how these factors are reshaping the competitiveness of the USD 74 billion auto component sector.

The rollout of GST 2.0 in September 2025 has streamlined tax structures, boosting consumer demand across vehicle segments.

Sohrab Bararia, Partner, India Investment Advisory, Grant Thornton Bharat, said, "The convergence of GST 2.0 and targeted customs incentives marks a de...