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Informist, Wednesday, Sept. 2, 2026

--Hyundai Motor Garg: Component suppliers should invest in R&D, technology

--CONTEXT: Comments by Hyundai Motor MD, CEO Tarun Garg at event in Delhi

--Hyundai Motor Garg: Time for auto parts cos to design, make advanced tech

 

NEW DELHI – Achieving India's goal of becoming a developed nation by 2047 will require consistent long-term policy support from the government to scale and accelerate the development of technologies and components, Tarun Garg, managing director and chief executive officer at Hyundai Motor India Ltd., said. At the 66th annual session of the Automotive Component Manufacturers Association of India, he called on the original equipment manufacturers to continue building long-term technology partnerships, suppliers to invest heavily in research and development and intellectual property, academia to strengthen applied research, and startups to drive speed and innovation.

 

Garg said every stakeholder should commit to five core actions, including mastering one critical technology, localising one imported component, creating one Indian patent, entering one global market, and integrating AI into every operational function. India's passenger vehicle industry has expanded from producing less than half a million units in 1996 to more than 4.7 million units.

 

"This progress came despite COVID-19, semiconductor shortages, logistics constraints, wars, and continuing geopolitical uncertainty," Garg said. 

 

Garg also highlighted that in the financial year 2025-26 (Apr-Mar), India exported approximately $24 billion worth of auto components, while importing around $25.4 billion, resulting in a trade deficit of $1.4 billion. The key concern is that exports remain heavily concentrated on mature technologies, whereas imports are dominated by advanced, high-value components essential for the future of mobility, he added.

 

To reverse this trend, Garg said the component industry should move beyond conventional manufacturing and create "value excellence"--making advanced technology affordable globally while maintaining global standards of quality, performance, and safety. To build this capability, suppliers should focus on mastering core technologies like semiconductors, rare-earth magnets and battery cells, and cost competitiveness. Suppliers should also work on compounding ecosystem learning across Tier-2 and Tier-3 suppliers and building export competitiveness in advanced technologies rather than traditional components.  End 

 

Reported by Anand JC, Devanshu Singla, and Pratyush Kumar

Edited by Himanshi Gupta

 

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