Hyundai India calls for stable policy to build advanced auto-tech exports
Hyundai Motor India MD Tarun Garg urged long-term policy consistency and deeper localization in semiconductors, EV batteries and power electronics, as India seeks to move beyond component exports toward advanced automotive technology.
What happened
Hyundai Motor India CEO Tarun Garg urged stable long-term policy and greater domestic capability in semiconductors, EV batteries and power electronics, calling
Key facts
- $24 billion auto-component exports in 2025-26
- $25.4 billion auto-component imports in 2025-26
- $1.4 billion trade deficit
- 66th ACMA Annual Session
- five actions proposed for industry stakeholders
Why this matters
Automotive OEMs and suppliers should prioritize JVs, acquisitions and long-term sourcing deals in chips, batteries and power electronics to secure localized technology capabilities before the market consolidates.
What to watch
- A durable post-2026 EV and auto-component incentive framework, including localization rules and tariff roadmap.
- Hyundai announcements involving Indian battery, electronics, semiconductor-packaging or power-electronics suppliers.
- New automotive chip packaging, testing, battery-cell or cathode-material investments with confirmed offtake agreements.
- Growth in exports of EV systems, electronic control units and powertrain modules versus conventional mechanical components.
- Whether the projected $1.4 billion auto-component trade deficit narrows or widens through 2025-26.
- Demand growth for mass-market EVs and hybrid vehicles, which determines supplier scale economics.
- Hyundai is likely to seek multi-year clarity on EV incentives, import duties, localization thresholds and export-linked manufacturing support.
- The company may deepen joint-development programs with Indian Tier-1 suppliers for power electronics, software integration, thermal systems and battery-pack components.
- Supplier investments are likely to concentrate first in battery packs, BMS, chargers, motors, inverters and electronics assembly rather than leading-edge semiconductor fabrication.
- Hyundai may position India as an export engineering and manufacturing base for affordable EV architectures, leveraging scale to negotiate policy support and supplier commitments.