India’s auto industry wants to own the road ahead

The heads of India's top carmakers and senior ministers gathered at the annual convention of the Automotive Component Manufacturers Association (ACMA) to discuss the need for deeper localisation in the auto industry to navigate global uncertainties. Maruti Suzuki's CEO, Hisashi Takeuchi, emphasized that deep localisation serves as an insurance policy against volatility.

Takeuchi explained that the goal is to reduce exposure to external disruptions by strengthening domestic capabilities and progressively owning a larger share of the value chain. He stressed that scale alone is insufficient and that quality across all suppliers, from Tier-2 to Tier-3, must become the industry's hallmark.

Hyundai India's CEO, Tarun Garg, highlighted the necessity of technological advancement amidst geopolitical risks. With the component trade deficit at $1.4 billion in FY26, Garg argued that ownership, not just output, should be the objective. He urged leaders to focus on localizing one component, filing one patent, and entering one new market.

SIAM President and Tata Motors' MD, Shailesh Chandra, agreed on the need for post-pandemic resilience to evolve. He called for a comprehensive approach that covers raw materials, processing, components, sub-components, and final systems. Chandra cited recent rare-earth supply shocks as proof that the response cannot stop at one mineral.

ACMA President Vikrampati Singhania echoed the sentiment, stressing that the value chain must extend beyond mere part manufacturing. He emphasized that India must create engineering and innovation domestically for both its own benefit and the world's. To achieve this, MSMEs and smaller suppliers must be integral to the process.

Union Heavy Industries Minister HD Kumaraswamy supported the industry's call by mentioning policy measures, such as Production Linked Incentive (PLI) schemes, rare-earth magnet manufacturing programs, and electric vehicle incentives. Kumaraswamy urged India not to merely participate in the global mobility transition but to lead it.