New Delhi, February 11 Hyundai Motor India MD and CEO Tarun Garg emphasized the need to enhance localization, talent upskilling, and global ambition to chart the next phase of growth for the domestic automobile industry, on Wednesday.
Speaking at an event here, he said that Hyundai has already invested over Rs 4,500 crore in the component supplier base around its Pune-based manufacturing plant.
"To succeed in India, we must be present in India," he asserted at an event organized by the Automotive Component Manufacturers Association of India (ACMA).
Garg emphasized that resilience in supply chains cannot come from dependence on a single geography for critical minerals, components, and electronics.
"Deep localization is the only way forward," he said, adding that suppliers must evolve from being mere part suppliers to technology partners capable of co-designing the future.
He underlined the importance of electronics, sensors, and system integration in the localization roadmap.
"If your roadmap does not include electronics, sensors, and integration, you face a challenge. The industry may surpass you," he cautioned.
Turning to India's demographic dividend, he praised the intelligence and knowledge of Indian engineers and designers but pointed to a gap between knowledge and readiness.
"We need to quickly upskill our talent with urgency," Garg said.
He stressed the need for shop-floor technicians trained in new emerging technologies.
"Our talent is our greatest rare earth element, and we must continue to hone it," he remarked.
On the policy front, he welcomed the Union Budget, which he described as a decisive blueprint for India's economic growth.
He highlighted the government's plan to build dedicated rare earth corridors across Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
The budget also announced a Rs 7,280 crore permanent magnet manufacturing scheme, which he said marks a structural shift away from dependence on external supply chains. "This is a game changer for our supply chains," he noted.
He also pointed to India's logistics transformation through new high-speed rail corridors, 20 national waterways, and expanded multimodal freight networks.
"This will sharply lower logistics costs and strengthen India's competitiveness," he said.
On the global trade front, he hailed India's newly concluded free trade agreement with the EU. "This unlocks huge potential for Indian manufacturers to scale up exports," he said.
He urged industry to view trade agreements as opportunities rather than protectionist threats. "India has the most economical ecosystem in terms of demographics, labour costs, and suppliers. We can take the world by storm," he said.
Referring to tariff reductions in US trade deals from 50 per cent to 18 per cent, he said that the changing geopolitical dynamics present new opportunities. He called for positioning India as a trusted, indispensable partner in reshaping global mobility value chains. "Why only emerging markets? The entire world is now open for us," he said.
He stated that the industry must look beyond domestic demand and aggressively pursue exports. "We can really, really look at exporting from India to all the countries of the world," he said.