Hyundai Motor India Urges Domestic Automotive Technology Development

India’s Automotive Industry Needs Greater Technology Self-Reliance

Hyundai Motor India Managing Director and Chief Executive Tarun Garg has called on the country’s automotive industry to strengthen domestic capabilities in critical technologies, including semiconductors, EV battery cells, rare-earth magnets and power electronics. Speaking at the 66th Annual Session of ACMA, Garg said India has already established significant manufacturing scale, but the next phase requires the ability to design, develop and manufacture technologies that will shape the future of mobility. His comments highlight a shift from manufacturing-led growth toward deeper technology ownership, with greater emphasis on domestic engineering, research, innovation and strategic independence across the automotive value chain.

Garg Calls for a Shift From Scale to Technology Ownership

Garg said India has successfully built substantial automotive manufacturing capacity, but argued that the industry must now accelerate efforts to achieve greater self-reliance. He emphasized that domestic companies should develop capabilities spanning the full technology cycle rather than relying primarily on imported advanced components. “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. The statement places technology development alongside manufacturing scale as a key requirement for India’s next stage of automotive growth.

Auto-Component Trade Deficit Highlights Technology Gap

India’s auto-component trade position was another major concern raised by Garg. He said the industry exported approximately $24 billion worth of components in financial year 2026, while imports reached around $25.4 billion, producing a trade deficit of $1.4 billion. However, Garg said the challenge extends beyond the headline trade imbalance because the composition of trade also reveals a technology gap. India’s component exports remain concentrated in relatively mature technologies, while imports are led by advanced and higher-value technologies. This imbalance underscores the need for domestic companies to move further into technologically sophisticated components and capabilities that can strengthen both competitiveness and strategic resilience.

R&D and Innovation Identified as Strategic Priorities

Garg urged India’s auto-component manufacturers to increase investment in research, development and innovation while building domestic capabilities in critical technologies. He argued that technology ownership is essential for achieving strategic independence and reducing reliance on imported advanced components. “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. The priorities identified by Garg span several foundational areas that influence vehicle electrification, electronic systems, energy storage and the broader technological competitiveness of the automotive industry.

Five Actions Proposed for Industry Leaders

Garg also encouraged automotive companies to move beyond conventional component exports and build stronger advanced-technology and engineering capabilities. He proposed a practical framework centered on technology mastery, localization, intellectual property, international expansion and artificial intelligence adoption. “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. The approach links domestic technology development with commercial outcomes, encouraging companies to establish expertise, reduce import dependence, generate intellectual property, expand internationally and apply AI across their organizations.

Critical Technologies Could Shape India’s Next Automotive Phase

The technologies highlighted by Garg are increasingly important as the automotive industry moves toward electrification, advanced electronics and software-intensive vehicles. Semiconductors support increasingly complex electronic systems, while battery cells and power electronics are central to electric mobility. Rare-earth magnets are also important for several high-performance electric motor applications. Building capabilities across these areas could help India strengthen its position in higher-value automotive technologies rather than remaining concentrated primarily in manufacturing and mature component categories. The focus on domestic design and development also suggests that future competitiveness will depend not only on production capacity, but on engineering expertise, intellectual property and the ability to commercialize advanced technologies.

Frequently Asked Questions

What did Tarun Garg call for at the 66th Annual Session of ACMA?
Tarun Garg called for India’s automotive industry to accelerate domestic technology development and reduce dependence on imported advanced components by building capabilities in critical areas such as semiconductors, EV battery cells, rare-earth magnets and power electronics. He also urged companies to increase investment in research and innovation, develop advanced engineering capabilities and strengthen technology ownership. His proposed actions include mastering critical technologies, localizing imported components, creating Indian patents, entering global markets and integrating artificial intelligence into business functions, with the broader objective of improving strategic independence and long-term competitiveness.