Tata Group patriarch Ratan Tata on Monday said auto companies need to focus on innovation be successful. Citing Tesla's innovative approach that disrupted the automotive industry, the 82-year-old business tycoon said it is quite conceivable that a leading car manufacturer would be Elon Musk's firm rather than auto giants Ford, GM, or Mercedes.

"So tomorrow the largest carmaker could be an Apple because it brings to the table a new approach to doing something," Tata told CNBC-TV18, implying that the companies with innovations had an edge in the auto sector.

Giving an example of innovation in business area, he said if you look at the automobile industry and the changes that are being envisaged today, such as autonomous driving and artificial intelligence, it is something that would be laughed on 10-15 years ago and yet it is happening in a smokestack industry.