German automotive supplier Continental AG’s ContiTech arm will be focusing on its industrial segment in India, noted Chief Executive Officer of ContiTech Groupe, Phillip Nelles, during a visit to Kolkata.

Speaking to Motoring Trends exclusively, Nelles said, “ContiTech is doubling down on industrial applications, seizing opportunities amid India's multi-billion-dollar infrastructure and energy investments. With sweeping transformations underway, the company aims to cement its position as a leader in material-driven solutions. Our strategy is to focus on industrial sectors such as commercial vehicles, railways, construction and construction machinery, where we can deliver the highest impact.”

Picking up the sentiment, Hannes Friederichsen, Head of BA Industrial Solutions APAC, Continental AG, said, “We specialises in rubber, thermoplastic materials and rubber-metal bonded components, ensuring system-critical reliability for industrial clients. If a conveyor belt fails, it’s not just an inconvenience – it’s a system-critical disruption. That’s where we add real value.” 

The parent company recently announced plans to spin off its automotive division and Contitech’s OESL. While industrial applications remain the core focus, the company acknowledges that the automotive sector operates on a different business model, requiring a distinct strategic approach.

In focus

ContiTech's core industries in India include mining, ports, energy, cement, highway vehicles, heavy trucks and construction machinery. Additionally, the company has a plant in Pune for its surface solutions vertical, producing foils and surfaces for vehicle interiors and living environments. Having already established a strong presence in Europe and the Americas, the company is now investing in APAC, with India playing a central role in its regional strategy. 

The company operates a conveyor belt plant in Kalyani and another facility in Sonipat for power transmission belts and air springs. While specific investment figures were not disclosed, ContiTech plans to expand operations in both Sonipat and Kalyani, potentially diversifying the product portfolio in these locations.

“We’ve been laying the groundwork for major investments and are now scaling up with an expanded product portfolio and localised operations. In the commercial vehicle segment, we are focusing on air springs for trucks, trailers and buses, driven by increasing demand for comfort and tyre wear reduction. Additionally, we are exploring rubber-metal bonding systems for heavy-duty applications. The Pune facility remains a key part of this growth strategy, supporting increasing production volumes,” said Friederichsen.

The company is also eyeing opportunities in the motorcycle segment, particularly in seat coverings. As it expands, it plans to bring advanced technologies from its European and US operations into India, focusing on design, functionality and sustainability. 

“Sustainability is a growing priority, and we have the expertise to integrate recycled materials into our products. We’re also enhancing functionality with features like embedded buttons and translucent surfaces for interactive displays while ensuring that vehicle interiors reflect modern design trends,” noted Nelles.  

The company’s future innovations span beyond the cockpit, extending to seating, interior coverings and mid-arm components.

Another area of expansion is predictive maintenance services, aimed at identifying early warning signs for component replacement or repair. This initiative is expected to significantly reduce downtime and operational costs for industrial customers.

Additionally, ContiTech is actively involved in air springs for high-speed trains and metros. With India’s rapid rail infrastructure development, ContiTech is transferring its expertise to support high-speed and metro train projects.

Smart surface solutions

ContiTech is adapting its smart surface solutions portfolio for the Indian market. Commenting on the same, Friederichsen said, “Leveraging our material expertise, advanced design capabilities and expertise in living solutions, we're empowering our customers to design the car interior of the future. This includes the development of functional surfaces that bring the comfort and aesthetics of home interiors to future car interiors. Moreover, we're committed to sustainability, as evident from our first carbon-neutral product, XPRESHN - Carbon Neutral. We've also developed a comprehensive sustainability toolbox for our PVC products, catering to the diverse needs of our customers. Last year, we launched our Benova Eco Protect Line, a testament to our dedication to reducing environmental footprint.”

“In the commercial vehicle segment, our easy-to-clean surfaces, equipped with the staynu technology, are designed to enhance the well-being of truck drivers. By providing attractive cabin solutions, we are contributing to a better driving experience. In the Asia-Pacific region, we are observing a strong preference for translucent materials and super soft materials. We're well positioned to cater to these requirements, with a broad range of products that are generating significant interest among our customers,” he added. 

Alluding to the significance of his visit to Kolkata, he noted, “We have been in the Indian market for many years and we are constantly scanning the market to identify opportunities to grow. Kalyani plant remains in focus for us to expand Indian operations, and as we follow the principle of ‘in the market, for the market’, we are evaluating opportunities of extending our local product portfolio too.”

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Mumbai-headquartered automotive engineering and components supplier Remsons Industries has signed a Strategic Technical License Agreement with Brazil-based AUSUS Automotive Systems do Brasil.

As per the understanding, Remsons will collaborate with ASUS Brazil to license proprietary technologies, enabling the development and manufacturing of high-quality products tailored to the local market.

The move aims to introduce advanced technologies for supporting the automotive and electronics industries in Brazil.

Rahul Kejriwal, Executive Director, Remsons, said, "We are excited to partner with ASUS Brazil to bring our technological expertise to the Brazilian market. This collaboration is a significant step towards supporting local OEMs and strengthening the industrial ecosystem in Brazil."

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Taiwan-headquartered Innolux Corporation is set to acquire Japanese electronics major Pioneer Corporation from EQT for USD 1.1 billion. As per the understanding, CarUX, a subsidiary of Innolux Corporation, focussing on smart cockpit solutions, will create strong synergies with Pioneer’s existing capabilities to continue on its global expansion trajectory.

Pioneer, a Japanese leader in automotive sound and navigation systems, has been an engineering powerhouse since its founding in 1938, known for its robust research and development and industry-leading manufacturing. The company provides in-car navigation and audio electronics to both original equipment manufacturers (OEMs) and the consumer aftermarket, alongside various hardware and software solutions for the automotive sector.

Since its 2019 acquisition by EQT, Pioneer has undergone a significant transformation to restore its financial health and ensure long-term growth. This effort has yielded strong results, with the company achieving double-digit EBITDA margins and substantial free cash flow for the fiscal year ending March 2025. EQT’s strategic initiatives included strengthening corporate governance, appointing a new leadership team and implementing strict cost and capital discipline, all of which substantially boosted profitability and cash generation.

The Japanese company has successfully refocused on its core expertise in automotive audio, introducing a new amplifier technology platform and securing major projects from clients both domestically and internationally. The company has also expanded into new growth areas by leveraging its existing technologies, launching Mobility Services (software-led navigation utilising proprietary Japan-specific map data) and Mobility AI Connectivity (AI-based dash cameras for global markets). Furthermore, Pioneer demonstrated resilience during challenging periods like the Covid-19 pandemic and semiconductor shortages, thanks to enhanced operational efficiencies and the strategic divestment of non-core assets.

Shiro Yahara, President and CEO, Pioneer, said, “EQT has been instrumental in helping us drive transformation and innovation while preserving our DNA as a global leader in automotive technology. We look forward to this next chapter of growth with CarUX, building on the solid foundation that EQT helped us establish. We are proud to celebrate this milestone and look forward to partnering with CarUX to continue our product innovations and accelerate our global expansion.”

Sanjay Dhawan, Chairperson of the Board and Independent Director of Pioneer, said, “The automotive industry is undergoing a profound digital transformation, with digital content in vehicles rising from 27 percent to 40 percent and software playing an increasingly central role in cars. Under EQT’s ownership, Pioneer has embarked on a transformative journey – embracing innovation to lead in this new, software-defined era of mobility. This innovation has created substantial value across the board, benefiting customers, employees and shareholders alike.”

Shane Predeek, Partner, EQT Private Capital, said, “We are proud to have helped revitalise one of Japan’s most iconic brands and reposition it for long-term success. This milestone marks an exciting new chapter for Pioneer, and we believe that there are synergies with CarUX and its parent company, Innolux, that will greatly benefit the business and its future potential. At EQT, we are committed to being responsible stewards of our companies – ensuring they are handed over to owners who can continue the momentum we’ve built and support their next phase of growth. This transaction also reflects EQT’s growing momentum in Japan, where we continue to execute on our strategy of building stronger, more resilient businesses with global ambition.”

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Tier 1 supplier Uno Minda has announced that its Board of Directors has approved setting up of a greenfield manufacturing facility for aluminium die casting in Sambhaji Nagar (Aurangabad), Maharashtra.

The new facility is targeted to meet the growing demand for casting components, particularly in electric two- and four-wheelers. As automakers look to introduce alternative energy vehicles with higher energy efficiency, lightweighting becomes a critical focus area. This is an area where aluminium die casting has emerged as a critical requirement for lightweight, high-performance vehicle platforms. EVs fundamentally require significantly more aluminium-based structural and thermal components compared to their internal combustion counterparts—making advanced die casting capabilities central to EV powertrain and body applications.

In addition, the upcoming facility will play vital role in supporting Uno Minda’s backward integration strategy by supplying essential casting components to its forthcoming four-wheeler electric vehicle powertrain plant.

The new project involves a total planned capital investment of approximately INR 2.1 billion, to be implemented in a phased manner over the next five years. The investment will be funded through a balanced mix of internal accruals and debt. Phase 1 of the plant is expected to commence commercial operations by Q2 FY27.

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German private equity investor Mutares SE & Co is set to acquire Continental’s drum brakes production and R&D location in Cairo Montenotte (Italy) as part of its new platform investment in the automotive and mobility segment.

This follows the Continental Group’s recent announcement to spin off its automotive business as an independent company, Aumovio in September 2025.

As per the understanding, Mutares will take over all employees and business activities related to Continental’s drum brake business in Cairo Montenotte. This is expected to add about EUR 100 million in revenue for the company in 2025. The facility in Cairo Montenotte, Italy, is a production and R&D site for hydraulic drum brakes and manufactures products such as the Parking Brake for Simplex Brakes (EPB-Si) and the Drum Brake (Si). It employs around 400 people.

Johannes Laumann, CIO, Mutares, said, “With the acquisition of Continental’s Cairo Montenotte site we are strengthening our automotive and mobility segment. The long-standing expertise, strong product portfolio and highly skilled workforce provide an excellent foundation for operational development and future growth.”

Philipp von Hirschheydt, member of the Continental Executive Board and CEO of the future Aumovio, added, “We are confident that Mutares, with its extensive experience in the automotive business, is the right owner to lead this site into the future. Our shared goal is to ensure continuity for employees, customers and partners while securing long-term prospects for the Cairo Montenotte location.”

“With this agreement, we further consolidate our European manufacturing footprint. Moreover, it marks an important step in our strategy in Europe to better allocate R&D and investments with our product strategy and future technologies, such as electric braking or integrated friction solutions. The transaction deal follows Automotive’s strategy to sharpen our focus on our core business and streamline our business operations,” added Hirschheydt.

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