The Indian automobile supply chains (IASCs) are currently experiencing a significant shift as it adapts to the demands of the Industry 4.0 era, marked by the collaboration of several new digital technologies like artificial intelligence (AI), internet of things (I0T), big data analytics and cyber physical systems, etc. This study delves into the complex challenges faced by different stakeholders among the supply chain units that consist of tier-1, tier-2, and tier-3 suppliers, original equipment manufacturers (OEMs), dealers and service providers. Key issues identified include the financial strain associated with technology upgrades, concerns over data privacy and security, the ethical dilemmas posed by automation and the socio-economic effects on local communities. The paper also discusses operational challenges related to digitizing supply chains, adapting to the lean manufacturing cultures & Just in Time (JIT), managing inventory and navigating logistics. Furthermore, it addresses the economic pressures stemming from competitive market forces and the regulatory hurdles that stakeholders must overcome. By examining these challenges, the paper offers a thorough understanding of the obstacles to effective Industry 4.0 adoption within the Indian automobile industry. The conclusions emphasize the importance of strategic investments, strengthened cyber security, ethical labor practices and collaborative initiatives to facilitate a seamless transition to a digitally powered supply chain. Feedback and improvement ideas are also discussed identifying potential solutions and best practices.