Localisation is transforming India’s auto industry, driving self-reliance, reducing costs, creating jobs, and positioning the nation as a global manufacturing and innovation powerhouse, writes Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director and Chief Manufacturing Officer – Hyundai Motor India Limited.
The Indian automotive industry is at a turning point – technology is evolving rapidly, consumer preferences are shifting, and the demand for sustainable mobility is surging. At the heart of this transformation lies localization, a game-changing strategy that is reshaping the industry’s future.
Localization: A Strategic Imperative
With a $7 billion investment earmarked for boosting the localization of advanced components by FY28, India is steering towards self-reliance. Beyond reducing import dependence, local sourcing streamlines supply chains, lowers production costs, and enhances price competitiveness, ensuring that customers get the best products at the most value-driven price points.
A National Movement: The Government’s Role
Localization isn’t just an industry ambition; it’s a national priority. The Make in India initiative and Budget 2025 provisions, such as custom duty exemptions and MSME support, are accelerating India’s push towards becoming a global manufacturing hub. This strategic shift, coupled with the China Plus One approach, is making India an attractive alternative for global supply chains.
Beyond Cost: Unlocking Economic and Talent Potential
Localization is more than a cost cutting measure—it’s a catalyst for economic growth. By partnering with local manufacturers, OEMs gain better control over quality and delivery timelines while creating jobs across industries like steel, technology, and plastics. India’s vast pool of engineering and R&D talent further strengthens its position as a hub for innovation and indigenous product development.
Hyundai’s Localization Success Story
For Hyundai, localization isn’t just a strategy, it’s a legacy. Since our inception, Make in India has been our foundation, making us the largest exporter of Made-in-India cars and a global ambassador of India’s engineering excellence. Our commitment to localization has led to:
- Achieved up to 92% localization in manufacturing
- A state-of-the-art battery assembly facility with Mobis India Ltd.—reducing EV battery costs and ensuring supply efficiency
- Forex savings of over $672 million since 2019
- 1,400+ direct job opportunities created
- Collaboration with 194+ vendors to manage 1,238+ parts at our Chennai plant
Localization isn’t just about economic benefits – it’s about selfreliance, industry leadership, and a commitment to Atmanirbhar Bharat.
The Road Ahead: Localizing for a Viksit Bharat
As India marches towards Viksit Bharat, OEMs must take the lead in driving localization, fostering innovation, and nurturing talent. By embedding localization into core business strategies, the industry can build a resilient, agile, and globally competitive ecosystem. Hyundai remains dedicated to this journey—because ‘Made-in-India’ isn’t just a tagline, it’s a movement. And we’re here to drive it forward.■
Disclaimer: The views expressed by the author are his own and do not necessarily reflect the views of FMM magazine.
Gopalakrishnan Chathapuram Sivaramakrishnan
Whole-time Director and Chief Manufacturing Officer
Hyundai Motor India Limited.