Hyundai India says OEM Localisation Reaches 83% in FY26

Hyundai Motor India said it achieved 83% localisation at the original equipment manufacturer level in the financial year ended March 2026, as the South Korean automaker reduced import dependence and strengthened its domestic supplier base.

The company said localisation is a key driver of cost competitiveness, supported by the indigenisation of high-value components and increased sourcing of locally produced steel.

In its annual report, the automaker said it localised components including AGM batteries, front cameras, fuel delivery pipes and standard fasteners. 

"Localization was a key driver of cost competitiveness during the year. Through focused indigenization of high-value components, including AGM batteries, front cameras, fuel delivery pipes and standard fasteners, HMIL reduced import dependency, strengthened supply continuity and mitigated foreign exchange risks," the company said. 

Hyundai added that domestic sourcing of steel increased by 10.5% through supplier development and sourcing optimisation, improving material cost efficiency while maintaining global quality standards.

The automaker noted that parts localisation generated savings of Rs 453 million during FY26, while value engineering initiatives contributed savings of Rs 709 million. It said design optimisation, improved material efficiency and early engineering intervention helped deliver these gains without affecting quality, safety or performance. 

The automaker said its procurement strategy is focused on improving cost competitiveness, enhancing supply resilience, advancing localisation and building a future-ready supplier ecosystem.

"During FY 26, our Company accelerated localization, expanded value engineering initiatives, improved export profitability, strengthened supplier quality and reinforced ESG and cyber governance across our supply chain," it said. 

Hyundai also reiterated that localisation will remain a key pillar of its long-term strategy. Under its Vision 2030 roadmap, the company plans to continue strengthening localisation and supply chain resilience while positioning India as an increasingly important manufacturing