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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Delhi NCR-based fluid transmission provider Imperial Auto has appointed Sandeep Bathla as its new Chief Global Operations Officer.

In his new role, Bathla will oversee manufacturing operations and direct programs to update automation, expand production capabilities and streamline supply-chain networks across company facilities. He will report to Vikram Wagh, Managing Director and Chief Executive Officer, Imperial Auto.

Bathla brings over three decades of industry experience to the role and previously served as Executive Director and Chief Operating Officer at Plasser India, following management roles at Blue Star, Motherson Sintermetal Technology and Eicher Tractors. He holds a Bachelor of Engineering in Mechanical Engineering from NIT Kurukshetra and a PhD from European International University, Paris.

Vikram Wagh said, “As Imperial Auto continues to scale its operations and strengthen its position in global markets, building a future-ready and high-performing manufacturing organisation will be critical. Sandeep brings extensive experience across manufacturing and the automotive industry, along with a strong understanding of operational excellence. His leadership will be instrumental in enhancing our manufacturing capabilities, improving responsiveness and creating greater value for our customers.”

The executive change aligns with Imperial Auto's plans to expand its international manufacturing footprint and engineering capabilities.

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Tier 1 automotive supplier Lumax Auto Technologies, part of the DK Jain Group, has further strengthened its management team by onboarding Ambarish Kumar Gupta as the new Vice-President – Operations.

Gupta comes with over two decades of experience in the automotive industry, with senior roles across financial operations.

The industry executive has worked with the likes of Forvia Faurecia, Marelli, Brose, Magna Steyr, Infosys, L&T Technology Services, BlueBinaries Engineering & Solutions and PGUB Management Consulting, among others.

In his new role, he will be responsible for advancing futuristic automotive electronics, strengthening operations and making the company future-ready.

Gupta will also support Lumax Auto Technologies’ innovation, technology and operational excellence roadmap.

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The Indian automotive component sector is projected to expand by approximately 8-9 percent in FY2027, according to a report by CareEdge Ratings. The market size is forecasted to reach INR 10,681 billion in FY2027, rising from INR 9,835 billion in FY2026.

The anticipated expansion is supported by domestic vehicle manufacturing, higher component content per vehicle, aftermarket replacement demand and ongoing integration with international supply chains.

The report states that total vehicle production in India increased from 23 million units in FY2022 to 34.7 million units in FY2026. Original equipment manufacturers (OEMs) generated 67 percent of sector revenues in FY2026, while exports and the aftermarket accounted for 22 percent and 11 percent, respectively.

On the other hand, auto component exports grew from INR 987 billion in FY2021 to INR 2,122 billion in FY2026, with expectations to reach INR 2,300 billion in FY2027. Component imports increased from INR 1,024 billion in FY2021 to INR 2,243 billion in FY2026, and are projected to rise to INR 2,431 billion in FY2027 due to continued reliance on semiconductors, battery cells and electronic systems.

Engine parts represented the largest product category at 24 percent of the component mix in FY2026, followed by suspension and braking at 17 percent and drive transmission and steering at 14 percent. However, product value is gradually shifting toward electronics, software systems and electric vehicle architectures. Total electric vehicle registrations rose from 170,000 in FY2020 to 2.45 million in FY2026, increasing electric vehicle penetration from 0.71 percent to 8.28 percent.

Ranjan Sharma, Senior Director at CareEdge Ratings, said, "India's auto component industry has emerged as an increasingly important part of the global automotive supply chain, supported by its manufacturing competitiveness, engineering capabilities, and expanding domestic market. With the auto ancillary industry market size expected to surpass Rs 10.6 trillion in FY27, the sector is well positioned to capture a larger share of global sourcing opportunities. Continued progress in localisation of critical components and development of advanced manufacturing capabilities will be key to enhancing value addition and strengthening India's long-term position in the global automotive ecosystem."

The aggregate revenue of the top 50 listed auto ancillary companies in India is expected to increase from INR 4,325 billion in FY2026 to INR 4,714 billion in FY2027. Sector capital expenditure is projected to reach INR 282 billion in FY2027 to support automation, capacity expansion and technology upgrades. Operating margins are expected to remain stable, managed through contractual cost pass-through mechanisms with vehicle manufacturers.

Government policy initiatives continue to influence capacity creation. The PLI-Auto Scheme recorded cumulative investments of INR 443.26 billion against an incentive outlay of INR 259.38 billion by FY2026. The PLI-ACC scheme for battery cell manufacturing attracted INR 51.80 billion in investments as of 31 May 2026, against an outlay of INR 181 billion. Additional demand support stems from the PM E-DRIVE scheme and the PM e-Bus Sewa scheme.

Geopolitical issues, freight rate fluctuations, and trade policies remain factors for export performance. The US represents the largest export destination, taking approximately 26 percent of Indian auto component exports, valued at INR 552 billion in FY2026.

Arti Roy, Associate Director at CareEdge Ratings, added, "CareEdge Ratings expects the Indian auto ancillary industry to grow by around 8-9% in FY27, supported by healthy OEM demand across major segments, increasing component content per vehicle, resilient replacement demand, higher localisation, and expanding global sourcing opportunities. The industry's ongoing transition towards electronics-intensive and cleaner mobility platforms is creating new opportunities across EV-linked components, advanced electronics, powertrain technologies, and other high-value automotive systems. Profitability is expected to remain broadly stable, although returns from ongoing investments in new capacities and advanced technologies are likely to materialise gradually. Companies with diversified customer relationships and geographical reach, wider product portfolios, strong engineering capabilities, prudent capital allocation, and the ability to adapt to the evolving component value pool are expected to remain better positioned."

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BorgWarner has broadened its variable cam timing portfolio through two newly secured contracts in Europe and China, reinforcing its position in the hybrid and internal combustion engine sectors. One agreement extends production and raises output volumes for a premium European automaker’s V6 platform, while the other represents a competitive replacement for a Chinese original equipment manufacturer’s 1.5-litre turbocharged gasoline unit.

The technical foundation for both awards is the centre-bolt Cam Torque Actuated system, which departs from conventional oil-pressure-based designs. By streamlining internal lubrication channels, the architecture achieves quicker cam phase adjustment, more dependable locking mechanism engagement and lower lubricant consumption, all of which contribute to measurable gains in thermal efficiency across both electrified and conventional powertrains.

Production for the European V6 family, which serves premium and sports vehicle segments with power ratings spanning 260 to 375 kilowatts, is already active. The enhanced supply agreement, including the enlarged volume commitment and an extended production horizon, will become effective in January 2027, covering both hybrid and gasoline-only iterations of the engine.

The Chinese programme, slated to enter production in September 2026, involves a high-volume 1.5-liter turbocharged engine line that underpins numerous sport-utility and sedan models destined for the domestic market. This victory over the prior supplier was attributed to the system’s fuel-saving characteristics, combined with localised manufacturing operations and a more competitive overall cost structure.

Henk Vanthournout, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems, said, “These awards underline the long-term competitiveness of our VCT portfolio across both hybrid and combustion powertrains. They reflect the quality, reliability and cost competitiveness our customers continue to value in our VCT and timing drive solutions.”

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