New Delhi: India’s auto industry is warning that its next big vulnerability may not be vehicle production, but dependence on imported high-value technologies, with the chiefs of Hyundai Motor India and Maruti Suzuki calling for deeper localisation across semiconductors, battery cells, power electronics and other critical components.At ACMA’s annual session, Hyundai Motor India MD & CEO Tarun Garg said India exported about $24 billion worth of auto components in 2025-26, but imported around $25.4 billion, resulting in a $1.4-billion trade deficit. “The concern goes beyond the deficit. 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.Garg said the industry needs to build domestic capability in semiconductor chips, rare-earth magnets, power electronics and battery cells, while stepping up investments in R&D and intellectual property. “Technology ownership is essential for strategic independence,” he said, adding that India must progress from exporting conventional components to advanced technologies and engineering capability.Maruti Suzuki India MD & CEO Hisashi Takeuchi also identified “deep localisation” as critical to insulating the industry from global disruptions. “Deep localisation is about reducing our exposure to external disruptions by strengthening domestic capabilities and progressively owning a larger share of the value chain,” he said.Takeuchi said changing global supply chains, govt support and India’s expanding automotive scale were creating a stronger case for localisation. Rising domestic demand and export opportunities, he said, now justify investments “including advanced technologies that were previously considered difficult to manufacture competitively in India.”Both executives also stressed that localisation would have to extend beyond large OEMs and Tier-1 suppliers. Takeuchi said stronger technology, engineering and quality capabilities among Tier-2 and Tier-3 suppliers would be critical, while Garg called for digitalisation, AI and shared learning to spread across the wider supplier ecosystem.
