SIAM auto component push: Can India lead on global tech

India’s auto component industry is being asked to aim higher than simply replacing imported parts. The focus is shifting towards building technology capabilities that can compete globally, which could eventually affect the technology, sourcing and localisation choices seen in Indian cars and bikes.

From localisation to technology leadership

The key message is that conventional localisation is no longer enough. Component makers are being urged to develop technologies that can give India a stronger position in the global automotive supply chain, rather than mainly producing locally what was previously imported.

This matters because components are increasingly linked to the technology inside the vehicle. A stronger domestic capability in emerging technologies could influence what manufacturers source from Indian suppliers over time.

What SIAM wants component makers to target

• Move beyond import substitution
• Go beyond conventional localisation
• Build capability in emerging technologies
• Target global technology leadership

The emphasis is therefore not just on how much of a vehicle is made in India, but on what level of technology Indian suppliers can develop and take to international markets.

Why emerging technology matters to buyers

For Indian buyers, this is a longer-term development rather than something that changes a car or bike purchase overnight. If component companies successfully build global-level technology capabilities, manufacturers could have more locally developed options when planning future vehicles.

It could also make India more important as a technology and component base, rather than primarily a market where products are assembled or localised. The real test will be whether this ambition turns into technologies that reach production vehicles.

Could this change future Indian cars and bikes?

The direction is significant, but the announcement itself does not give a specific technology, vehicle or launch timeline. For buyers, the useful thing to watch is whether component makers start moving from localisation programmes towards actual technology development and global competitiveness.

Do you think Indian component makers can realistically become global technology leaders, and would that influence your next vehicle purchase?