Hyundai Motor India CEO calls for deep localisation, global ambition

New Delhi: Hyundai Motor India MD and CEO Tarun Garg on Wednesday stressed the need to enhance localisation, talent upskilling, and global ambition to chart the next phase of growth for the domestic automobile industry.

Speaking at an event here, he said Hyundai has already invested over Rs 4,500 crore in the component supplier base around its Pune-based manufacturing plant.

"To win in India, we must be in India," he asserted at an Automotive Component Manufacturers Association of India (ACMA) event here.


Garg emphasised that resilience in supply chains cannot come from dependence on a single geography for critical minerals, components, and electronics.

"Deep localisation is the only way forward," he said, adding that suppliers must evolve from being mere part suppliers to technology partners capable of co-designing the future.

He underlined the importance of electronics, sensors, and system integration in the localisation roadmap.

"If your roadmap does not include electronics, sensors, and integration, you have a challenge. Industry may outpace you," he cautioned.

Turning to India's demographic dividend, he praised the intelligence and knowledge of Indian engineers and designers but pointed to a gap between knowledge and readiness.

"We need to quickly upscale our talent with urgency," Garg said.

He stressed the need for shop-floor technicians trained in new emerging technologies.

"Our talent is our greatest rare earth element, and we must continue to hone it," he remarked.

On the policy front, he welcomed the Union Budget, which he described as a decisive blueprint for India's economic growth.

He highlighted the government's plan to build dedicated rare earth corridors across Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.

The budget also announced a Rs 7,280 crore permanent magnet manufacturing scheme, which he said marks a structural shift away from dependence on external supply chains. "This is a game changer for our supply chains," he noted.

He also pointed to India's logistics transformation through new high-speed rail corridors, 20 national waterways, and expanded multimodal freight networks.

"This will sharply lower logistics costs and strengthen India's competitiveness," he said.

On the global trade front, he hailed India's newly concluded free trade agreement with the EU. "This unlocks huge potential for Indian manufacturers to scale up exports," he said.

He urged industry to view trade agreements as opportunities rather than protectionist threats. "India has the most economical ecosystem in terms of demographics, labour costs, and suppliers. We can take the world by storm," he said.

Referring to tariff reductions in US trade deals from 50 per cent to 18 per cent he said the changing geopolitical dynamics present new opportunities. He called for positioning India as a trusted, indispensable partner in reshaping global mobility value chains. "Why only emerging markets? The entire world is now open for us," he said.

He stated that the industry must look beyond domestic demand and aggressively pursue exports. "We can really, really look at exporting from India to all the countries of the world," he said.