Auto industry calls for deeper localisation to strengthen India’s global manufacturing ambitions
Automotive industry leaders in India are advocating for deeper domestic localisation across the entire value chain to reduce supply-chain risks and improve global competitiveness. They argue that shifting from simple assembly to manufacturing advanced components like semiconductors and batteries is essential for India to become a global mobility hub.
Why it matters
This reflects a strategic shift in India's industrial policy aimed at reducing import dependency and positioning the country as a critical node in the global automotive supply chain.
India’s automobile industry needs to move beyond local assembly and build domestic capabilities across the entire value chain—from raw materials and components to advanced technologies and final systems—to reduce supply-chain risks and strengthen global competitiveness, industry leaders said.
Tata Motors Managing Director Shailesh Chandra said India’s localisation push should go beyond import substitution and focus on establishing the country as a major global automotive manufacturing and mobility hub.
“The opportunity before is much larger than just import substitution,” Chandra said, adding that India should aim to become “one of the world’s leading automotive manufacturing and mobility hubs.”
As vehicles become increasingly technology-intensive, retaining a larger share of value creation within India will be critical, he said. The vehicles of the future will rely heavily on electronics, semiconductors, sensors, power electronics, batteries, motors, software, connectivity and advanced materials.
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