Hyundai Motor India Managing Director and Chief Executive Tarun Garg on Wednesday called on the country's automotive industry to build domestic capabilities in critical technologies such as semiconductors, EV battery cells, rare-earth magnets and power electronics, as India seeks greater self-reliance in the sector.
Garg said India had built significant manufacturing scale but needed to develop the ability to design, develop and manufacture technologies that will shape the future of the automotive industry.
“While India has successfully built scale, the time has come now to accelerate and leapfrog towards greater self-reliance by building domestic capabilities to design, develop and manufacture future technologies, including semiconductor chips, EV battery cells, power electronics and much more,” Garg said while speaking at the 66th Annual Session of ACMA.
India's auto-component industry exported approximately $24 billion worth of components in financial year 2026, while imports stood at around $25.4 billion, resulting in a trade deficit of $1.4 billion, Garg said.
He said the issue was not limited to the trade deficit, as India's component exports remained concentrated in relatively mature technologies while imports were led by advanced and higher-value technologies.
Garg urged auto-component makers to focus on developing domestic technology capabilities and increase investments in research and innovation.
“First, master technology. We should develop domestic capability in semiconductors, rare-earth magnets, power electronics, battery cells and other critical technologies. We need to invest even more in R&D and innovation, because technology ownership is essential for strategic independence,” he said.
He also called on companies to move beyond conventional component exports and develop advanced technologies and engineering capabilities.
“Master one critical technology, localize one imported component, create one Indian patent, enter one global market, and integrate AI into each function. If every leader commits to these five actions, the impact will be transformative,” Garg said.