India needs to build advanced tech capabilities, reduce import dependence: Hyundai CEO Tarun Garg

India needs to move beyond manufacturing scale and accelerate the development of domestic capabilities in advanced technologies such as semiconductors, EV battery cells and power electronics to reduce import dependence and strengthen self-reliance, Hyundai Motor India MD and CEO Tarun Garg said on Wednesday.

Addressing the 66th Annual Session of the Automotive Component Manufacturers Association of India (ACMA), Garg said India’s automotive industry had built a strong manufacturing base and demonstrated resilience through repeated disruptions, but the next phase should focus on converting that resilience into global leadership.

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India exported about USD 24 billion worth of auto components in FY2025-26, while imports stood at around USD 25.4 billion, resulting in a trade deficit of approximately USD 1.4 billion, Garg said.

"Our exports remain concentrated in relatively mature technologies, while our imports are led by advanced, higher-value technologies which may well define the future," he said.

The challenge, therefore, extends beyond the size of the trade deficit, Garg said, arguing that India must build the technology, manufacturing capabilities, employment opportunities and global competitiveness needed to support the country's vision of Viksit Bharat by 2047.

"Time is also now right for deliberations on how to scale our skills, capabilities, volumes and revenues and move together from resilience to leadership."

Garg highlighted the growth of India's economy and automotive sector since 1996. India's GDP has expanded from approximately USD 393 billion to USD 4.15 trillion, while the passenger vehicle industry has grown from less than half a million units to more than 4.7 million units over the same period.

The growth has come despite "COVID-19, semiconductor shortages, logistics constraints, wars and continuing geopolitical uncertainty," he said, adding that India's supplier ecosystem had remained resilient through successive disruptions.

The auto-component industry responded by identifying alternatives, accelerating localisation, managing critical shortages and working closely with original equipment manufacturers to ensure business continuity, Garg said.

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However, he said the industry now needs to move from managing disruptions to building capabilities that can give India a lasting competitive edge.

"While India has successfully built scale, 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," he said.

Garg outlined four priorities for India's auto-component industry: mastering critical technologies, engineering costs, compounding learning and building export competitiveness.

He called for a shift from "Make in India" to "Design in India, Engineer in India and Create in India", with the government, automakers, component suppliers, academia and startups working together to build domestic technology and intellectual property.

The industry, he said, should focus on localising critical imports, creating Indian patents, entering global markets and integrating artificial intelligence across operations.

India's scale, engineering talent and cost competitiveness can be combined to create a distinct global advantage, Garg said, with the focus now shifting towards delivering high-quality and affordable technologies from India to the world.