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Hyundai India calls for stable policy to build advanced auto-tech exports
Our read
India’s auto-export strategy will move toward localized EV and electronics modules, but imported chips, cells and core IP will keep the advanced-component trade deficit elevated in the near term.
For operators
Hyundai’s call for stable policy and local semiconductor, battery and power-electronics capacity signals that Indian auto manufacturers must deepen supplier partnerships to compete in higher-value vehicle technology exports.
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Hyundai announcements involving Indian battery, electronics, semiconductor-packaging or power-electronics suppliers.
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The report,
Hyundai Motor India CEO Tarun Garg urged stable long-term policy and greater domestic capability in semiconductors, EV batteries and power electronics, calling on automakers and suppliers to invest in R&D, patents, AI and localization to shift India toward advanced automotive technology exports.
Reported figures
From the report. Source details below
| $24 billion auto-component exports in | 2025-26 |
|---|---|
| $25.4 billion auto-component imports in | 2025-26 |
Also in the report
- $1.4 billion trade deficit
- five actions proposed for industry stakeholders
Other figures
- 66th ACMA Annual Session
Why it matters to operators
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 next
- A durable post-2026 EV and auto-component incentive framework, including localization rules and tariff roadmap.
- 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.
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- 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.
The counter-case
The case against this reading — not reported by the source.
Hyundai’s call for policy stability may be as much a bid for incentives, tariff protection and regulatory concessions as a credible near-term export strategy. India’s localization push faces structural constraints: imported chip IP, limited battery-material processing, uneven supplier quality, high capital requirements and a relatively small domestic market for advanced vehicle electronics. A stable policy framework alone may not overcome cost gaps versus China, Korea and Southeast Asia, while localization mandates could raise vehicle costs and reduce export competitiveness. The projected component trade deficit could persist or worsen if domestic assemblers expand before high-value upstream capabilities are established.