The companies in present challenging world are trying hard to improve their productivity and capacity utilization levels without actually increasing the sale price of their products. In India, in today combative world, the majority of automotive manufacturing industries are scuffling hard with their low levels of productivity. Possibly there are different reasons for this and capacity waste or under-utilization of productive capacity in industries appears to be one of the prime reasons. As corrective action, the present study makes an effort to check the efficacy of Six Sigma approach to improve capacity waste management. With a case study, through successful execution of Define phase, the study confirms the perception of Six Sigma for capacity waste management in Indian automotive industry.