Archive · 2 Sep 2026
Auto Industry Urges Shift From Make to Create in India
India already makes many car and vehicle parts, but industry leaders want it to do more.
They want Indian companies to invent and own more of the technology used in vehicles.
This includes batteries, computer chips, electric motors, sensors and software.
Leaders say this would help India earn more from advanced products.
They also want smaller Tier-2 and Tier-3 suppliers to improve their engineering and quality.
The industry currently exports many mature technologies but imports more advanced components.
This creates a trade deficit and leaves India dependent on overseas suppliers.
The auto-component industry wants to grow from about $86 billion in FY26 to $200 billion by FY30.
Its message is to design, develop, manufacture and export more technology from India.
Automotive leaders urged India to develop and own vehicle technologies rather than mainly manufacture overseas-developed products.
The proposed strategy emphasizes domestic research, engineering, intellectual property, semiconductors, batteries, software and power electronics.
India’s auto-component industry recorded about $86 billion in turnover and $24 billion in exports in FY26.
Imports of auto components reached about $25.4 billion in FY26, creating a reported $1.4 billion trade deficit.
The industry is targeting approximately $200 billion in turnover and $45 billion in exports by FY30.
- Who
- Indian automotive industry leaders, including representatives of the Automotive Component Manufacturers Association of India, the Society of Indian Automobile Manufacturers, Hyundai Motor India and Maruti Suzuki India.
- What
- They called for a shift from manufacturing overseas-developed technologies to designing, developing and owning automotive technologies in India.
- When
- The call was made at the 66th annual session of the Automotive Component Manufacturers Association of India, with targets set for FY30 and industry data cited for FY26.
- Where
- India.
- Why
- To capture more value from advanced automotive technologies, strengthen strategic independence, reduce dependence on overseas suppliers and support the industry’s growth targets.
Technology Ownership and Innovation
Manufacturing Scale and Localization
Next phase of localization
Technology Ownership and Innovation
Industry leaders said India should move beyond assembling or manufacturing technologies developed abroad and instead design, develop and own technologies domestically.
Manufacturing Scale and Localization
India’s existing manufacturing scale, supplier ecosystem and increased domestic content remain important foundations for the industry’s next phase.
Technology gap in trade
Technology Ownership and Innovation
Tarun Garg said exports are concentrated in relatively mature technologies while imports increasingly involve advanced, higher-value components, showing a need for domestic capability.
Manufacturing Scale and Localization
The industry already exports about $24 billion in components and aims to expand exports to approximately $45 billion by FY30, indicating that manufacturing capabilities remain a major growth opportunity.
Role of smaller suppliers
Technology Ownership and Innovation
Hisashi Takeuchi said Tier-2 and Tier-3 suppliers must improve quality, engineering and productivity to support world-class vehicles.
Manufacturing Scale and Localization
The proposed technology transition requires increasingly complex and scale-dependent products to become economically viable across the broader supplier ecosystem.
- FY26 component turnover
- Approximately ₹7.6 lakh crore, or about $86 billion.
- FY26 component exports
- Approximately $24 billion.
- FY26 component imports
- Approximately $25.4 billion.
- Reported trade deficit
- About $1.4 billion in FY26.
- FY30 turnover target
- Approximately $200 billion.
- FY30 export target
- Approximately $45 billion.
- Priority technologies
- Semiconductors, power electronics, batteries, electric motors, sensors, software and connected systems.