Chung Eui-sun, Chairman of Hyundai Motor Group, converses with employees at Hyundai Motor's Pune plant in India. 2026.1.14. [Photo=Yonhap News]

① Why India?

② Why Did Automobiles Go to India First?

③ Batteries Are Already Finding Answers in India

④ The Next Question for Semiconductors

⑤ Why Did Shipbuilding Move Away from China?

⑥ Companies Moved, Governments Did Not

 An Experimentation Ground for Simultaneous Transition in Electronics and AI

As India emerges as a destination post-'China', the automotive industry was the first to react. This is no coincidence.

This is because the automobile is not a single industry but a complex one that combines manufacturing, automotive electronics, software, batteries, and AI. In that the automotive sector is where industrial transformation is most rapidly and comprehensively revealed, changes in India were first detected in this industry.

A characteristic of the Indian automotive market is "transition before maturity."

While vehicle penetration is still low, this very condition allows for the simultaneous adoption of electrification, automotive electronics, and connected technologies.

Unlike China, where an internal combustion engine-centric structure is already entrenched, or the United States, where regulatory and cost burdens are high, India is a market where technological transitions do not need to be made in stages.

It is an experimentation ground and a testing ground for automotive companies, as it is a "simultaneous transition market" where finished vehicles, automotive electronics, software, and data-driven services can be introduced concurrently.

Hyundai Motor was the first company to recognize this structure.

Hyundai Motor did not view India as a mere production base or export hub.

Since the late 1990s, it has pursued localization strategies centered on small cars and subsequently built a domestic-focused portfolio with SUVs and compact SUVs.

The important point is that this strategy was designed before the uncertainties of the Chinese market began to fully materialize. India was not a market chosen hastily to replace China, but rather the result of creating a structure for growth without China in advance.

An industry's movement is always accompanied by its supporting industries.

As the automotive market grows in India, demand for automotive electronics parts, semiconductors, batteries, and software is increasing simultaneously.

In particular, India is a market where vehicle premiumization is rapidly progressing, while price sensitivity is also high. These conditions align with the strengths of the Korean automotive industry, where "durability and reliability" are more important than "lowest price."

While Chinese companies can quickly enter with price competitiveness, they face limitations in long-term quality trust and brand accumulation.

The geopolitical environment also influenced the choice of the automotive industry.

In India, Chinese companies are both competitors and subjects of caution. Due to border disputes and security conflicts, policy risks concerning Chinese companies are always present.

In contrast, while South Korea is a technological competitor, it has no assets of political or ethnic conflict. From India's perspective, Korean automotive companies are partners that allow for risk diversification while securing technology.

With the added strategy of the United States fostering India as a key axis for countering China, the position of Korean companies within India's automotive supply chain is becoming even more solidified.

The fact that the automotive industry moved first is an important signal.

This is not simply a success story for one industry, but evidence that the Indian market is no longer confined to low-value-added manufacturing.

The Indian automotive market, where electrification, automotive electronics, and AI are spreading simultaneously, serves as the starting point for a chain reaction that leads to the semiconductor, battery, and software industries.

Therefore, automobiles are a "pioneer industry."

The fact that automobiles have established themselves first in India means that the conditions for other industries to follow the same path have reached a mature stage.

However, not all industries will move at the same pace. Some industries are already finding answers, while others are still in the questioning stage.

In the next installment, we will examine the reality of the post-China era that has already begun to unfold in India, focusing on the battery industry, particularly electric two-wheelers and lithium-ion batteries.