Hyundai raises OEM localisation to 83% in FY26
Autocar Professional, 5 Aug '26
Hyundai Motor India (HMIL) achieved 83% original equipment manufacturer (OEM) localisation during the financial year ended March 2026, as the automaker continued to reduce import dependence and strengthen its domestic supplier base.
The company said localisation remained a key driver of cost competitiveness, supported by the indigenisation of high-value components and increased sourcing of locally produced steel.
In its annual report, Hyundai said it localised components including absorbed glass mat (AGM) batteries, front cameras, fuel delivery pipes and standard fasteners.
"Localisation was a key driver of cost competitiveness during the year. Through focused indigenisation of high-value components, including AGM batteries, front cameras, fuel delivery pipes and standard fasteners, HMIL reduced import dependency, strengthened supply continuity and mitigated foreign exchange risks," the company said.
Hyundai further added that domestic steel sourcing increased by 10.5% through supplier development initiatives and sourcing optimisation, improving material cost efficiency while maintaining global quality standards.
The automaker said parts localisation generated savings of Rs. 453 million (US$ 5.1 million) during FY26, while value engineering initiatives contributed additional savings of Rs. 709 million.
According to the company, design optimisation, improved material efficiency and early engineering intervention helped achieve these savings without compromising quality, safety or performance.
Hyundai said its procurement strategy is focused on improving cost competitiveness, enhancing supply chain resilience, advancing localisation and developing a future-ready supplier ecosystem.
"During FY26, our Company accelerated localisation, expanded value engineering initiatives, improved export profitability, strengthened supplier quality and reinforced ESG and cyber governance across our supply chain," the company said.
The automaker reiterated that localisation will remain a key pillar of its long-term strategy. Under its Vision 2030 roadmap, Hyundai plans to further strengthen localisation and supply chain resilience while positioning India as an increasingly important global manufacturing hub.
