Automotive Electronics in India: Hyundai’s Tarun Garg Urges Suppliers to Pivot or Risk Falling Behind

Automotive Electronics in India has become the defining factor for future competitiveness, with Hyundai Motor India MD and CEO Tarun Garg urging suppliers to urgently recalibrate their strategies at the ACMA Excellence Awards and 11th Technology Summit 2026. He cautioned that companies failing to embed electronics, sensors and system integration into their long-term roadmaps could struggle to remain relevant in a rapidly transforming ecosystem. According to Garg, the shift underway is not incremental but structural, demanding deep capability upgrades across the supplier base.
“If your roadmap does not include electronics, does not include sensors, does not include system integration, you have a challenge ahead. The industry may outpace you,” Garg said, delivering one of the strongest signals yet to automotive suppliers in India.

Automotive Electronics in India Driving Structural Transformation

For decades, competitive differentiation in the automotive sector was anchored in mechanical engineering excellence, manufacturing scale and cost efficiency. Garg highlighted that this paradigm is being replaced by a technology-led framework where vehicle electronics and software capabilities are becoming central to value creation. Vehicles are no longer static products delivered at the showroom but evolving platforms enhanced continuously through digital upgrades.
“We are fast developing into a software auto industry that happens to put its software on wheels,” Garg noted, underscoring the accelerating transition towards software defined vehicles and connected mobility architectures.

Rising Electronics Content Per Vehicle

The electronics share within modern vehicles is expanding at an unprecedented pace. Advanced driver assistance systems, connectivity modules, electronic control units and automotive sensors in India are increasingly forming the backbone of new-generation platforms. This rising content intensity is shifting the balance of innovation from purely mechanical components to integrated hardware-software ecosystems.
For automotive suppliers in India, this means capabilities in system integration automotive solutions, embedded electronics and cross-domain engineering are no longer optional. Instead, they are foundational to participating in future vehicle programs and strategic partnerships with OEMs.

From Component Makers to Technology Partners

Garg called on suppliers to reposition themselves beyond build-to-print execution and transactional manufacturing. He emphasised that OEM expectations are evolving towards co-development and technology collaboration, particularly in vehicle electronics and intelligent systems.
“All suppliers should migrate from being just part suppliers to technology partners who can co-design the future with us,” he said.
This shift requires:

• Early-stage R&D investment in automotive electronics in India.

• Capability-building in sensors and control systems.

• Stronger software and validation expertise.

• Proactive engagement before formal RFQs are issued.

“Do not wait for an RFQ to start thinking about future technologies. Invest early so that when the opportunity arrives, you are not catching up but leading,” he added.

Localisation and Supply Chain Resilience

The evolution of Automotive Electronics in India is also closely tied to supply chain resilience. Garg pointed out that semiconductor shortages and geopolitical disruptions exposed vulnerabilities in globally optimised but concentrated sourcing models. Efficiency without diversification proved fragile when critical components were constrained.
Strengthening domestic capabilities in high-value electronics, sensors and semiconductor-linked subsystems will be crucial to de-risk future operations. Deeper localisation not only enhances resilience but also positions India’s automotive suppliers to capture greater value within global programs.
As India consolidates its position as the world’s third-largest automotive market, sustaining that momentum will depend on innovation-led collaboration and electronics-centric capability expansion. In the emerging mobility landscape, leadership will increasingly belong to those who integrate electronics, software and system engineering at the core of their strategy rather than treating them as peripheral additions.