Auto Companies Express Concerns Over High-Value Tech Imports
New Delhi: India’s auto industry is raising alarms about its reliance on imported high-value technologies, which it sees as a growing vulnerability. Executives from Hyundai Motor India and Maruti Suzuki emphasized the need for deeper localization in critical components such as semiconductors, battery cells, and power electronics during the annual session of the Automotive Component Manufacturers Association (ACMA).
Hyundai Motor India Managing Director and CEO Tarun Garg highlighted a concerning trade deficit in auto components, with exports valued at approximately $24 billion in 2025-26, while imports reached around $25.4 billion. Garg pointed out that the industry’s exports are largely focused on mature technologies, whereas imports are dominated by advanced technologies that will shape the future of the sector. He stressed the importance of developing domestic capabilities in semiconductor chips and other advanced components, advocating for increased investments in research and development.
Maruti Suzuki India Managing Director and CEO Hisashi Takeuchi echoed the call for “deep localization” to mitigate risks from global supply chain disruptions. He noted that strengthening domestic capabilities and owning a larger share of the value chain are essential for the industry. Takeuchi also mentioned that changing global supply chains and government support, combined with India’s growing automotive scale, create a compelling case for localization. He indicated that rising domestic demand and export opportunities now warrant investments in advanced technologies that were previously seen as challenging to manufacture competitively in India.
Both executives agreed that localization efforts must extend beyond large original equipment manufacturers (OEMs) and Tier-1 suppliers. Takeuchi emphasized the need for enhanced technology and quality capabilities among Tier-2 and Tier-3 suppliers. Garg added that digitalization, artificial intelligence, and shared learning must permeate the broader supplier ecosystem to strengthen the industry’s foundation.
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