The globalization of the auto industry increasingly fosters the formation of new alliances. As a resultant of this the automobile Industry in India is now working in terms of the dynamics of an open market. In order to achieve a breakthrough profit performance in a tight competitive environment and with the shadow of a never ending recession looming over, it is necessary to have a single heuristic approach to fight against the adversities of the market. In order to capitalize on the opportunities, the industry needs to develop or acquire technologies and capabilities to produce vehicles that meet future market needs. Thus, with respect to these factors this paper aims to develop lean sigma model for automobile industry and reveal the different processes involved in the manufacture of automobile. This paper also gives a brief review of the history of Indian Automobile Industry and summarizes the developments in the course.