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The automotive industry of India is one of the largest and fastest growing industries. With arrival of foreign brands like Volkswagen, Audi, etc. the global market place has become increasingly competitive in recent time and industries are facing tough challenge of making continuous improvement in products. The competitiveness is an important issue of an industry. Competency development is widely regarded as vital tool to enhance the competitiveness of organizations. Based, on aggregate performance of a firm, it comprehensively explores the varying importance of manufacturing competencies and drives of industrial competitiveness. Hence by, exploring the manufacturing competencies of manufacturing industry, one can reflect the competitiveness of manufacturing industry as a whole. This study presents various factors of manufacturing competencies affecting industrial competitiveness as the significance of these competencies is increasing day by day in global manufacturing industry.