Hyundai India CEO Urges Shift to Advanced Tech Exports for Strategic Independence

Hyundai Motor India MD and CEO Tarun Garg has called on the Indian government to establish a consistent, long-term policy framework to accelerate the development of advanced automotive technologies. Garg argues that the nation must pivot its industrial strategy to achieve true strategic independence in the global market.

Speaking on the necessity of evolving the domestic supply chain, Garg emphasized that India needs to shift its focus from exporting conventional auto components and finished vehicles toward exporting advanced technologies, software, and high-end engineering capabilities. He noted that the government must provide the policy stability required to support industrial scale and the rapid development of critical components.

The Technology Gap

While India has achieved significant scale in automotive manufacturing, the industry remains heavily dependent on imports for high-value, future-defining technologies. This dependency is most evident in the procurement of semiconductors, power electronics, and electric vehicle (EV) battery cells. Currently, the sector's export strength is concentrated in mature, lower-value technologies, while the most sophisticated components are sourced from abroad, creating a structural imbalance in the trade of automotive tech.

The Path to Strategic Independence

According to Garg, the transition from a "Make in India" approach to one centered on "Design, Engineer, and Create in India" is essential for economic growth. He asserted that investing more heavily in research and development (R&D) and innovation is the only way to secure technology ownership, which he described as essential for strategic independence.

By mastering critical domains such as AI and power electronics, India has the opportunity to move up the global value chain. This shift would allow the country to transform into a global hub for affordable, high-quality advanced automotive technology, reducing its reliance on foreign intellectual property and imports.

Future Outlook

Industry observers are now watching for whether the government will respond with the long-term policy incentives Garg requested. The primary challenge remains the acceleration of domestic capabilities in semiconductors and battery chemistry to match the pace of global EV adoption. Until these high-value capabilities are internalized, India's automotive sector will continue to face a gap between its manufacturing volume and its technological ownership.