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.”

Comments (0)

ADD COMMENT

Link Copied!

French tier 1 supplier Valeo has outlined its new financial trajectory, ‘Elevate 2028,’ focusing on financial strength and growth, with a specific emphasis on expanding market share in key geographies, including India.

The company sees India as a market undergoing a deep transformation, perfectly positioning Valeo to benefit from increasing demand for advanced features and the electrification of vehicles.

Valeo expects significant growth in its Indian market operations over the plan's duration. The company forecasts its sales in India will nearly triple from EUR 220 million in 2024 to approximately EUR 700 million in 2028.

Globally, the Elevate 2028 plan aims to steadily improve profit, generate higher cash, and return to sales growth. The plan is powered by three ‘engines’: steadily increasing profit from 2022, generating higher cash from 2025 and returning to sales growth from 2027.

Christophe Perillat, CEO, Valeo, said, “Since 2022, our Move Up plan has ensured that we are well positioned in terms of technology to succeed in the market and has laid the foundations for significant financial improvements, resulting in a steady improvement in Group profit and cash. As we embark on the next stage with our Elevate 2028 plan, we intend to capitalise on these achievements and to further improve our financial fundamentals. To do this, our plan will be powered by three engines. The first engine is a steady increase in profit. It started in 2022 and will carry on delivering. The second engine, generating higher levels of cash, has just been fired. 2025 represents a turning point in the evolution of our business model and confirms our ability to generate more cash. The third engine will be the return to growth. It will kick in in 2027, as our strong order book translates into sales."

Comments (0)

ADD COMMENT

Link Copied!

New Delhi-based EV powertrain startup Tsuyo Manufacturing has signed a Letter of Intent (LoI) with the Government of Karnataka to establish a new manufacturing plant and a large testing track for commercial vehicles in the state. The LoI was formalised at the Bengaluru Tech Summit 2025.

The new facility will focus on the design and production of heavy-duty EV powertrain systems for commercial and industrial applications. Key components to be developed and manufactured include: Electric Motors (across various topologies including IPMSM, ACIM, SRM, SynRM, and Axial Flux). E-Drives, E-Axles and Automatic Transmissions (AT), Integrated 2-in-1 and 3-in-1 Powertrain Solutions and Complete Powertrain Assemblies for heavy commercial EVs.

The facility will also include a dedicated Testing Track for the field testing and validation of buses, trucks, mining vehicles, and other heavy-duty EVs.

The plant's manufacturing capacity will range from 0.5 kW to 250 kW, with extended capability up to 600 kW through partnerships with CETL and LvKON.

The initiative is intended to strengthen India’s domestic manufacturing capabilities for high-performance EV powertrain systems, reducing reliance on imports. By producing motors, e-axles and integrated solutions, the facility will support the growth of India's commercial EV markets, including bus, truck and mining vehicles. The project is expected to create direct and indirect employment and boost industrial development in the state.

Vijay Kumar, Founder and CEO, Tsuyo Manufacturing, said, “This LoI marks a pivotal moment for Tsuyo and for the future of India’s EV ecosystem. Karnataka has always been at the forefront of innovation and advanced manufacturing, and we are proud to partner with the state to establish a facility that will redefine powertrain excellence for heavy commercial electric vehicles. With this investment, we aim to deliver world-class, reliable, and locally manufactured powertrain solutions that will power India’s transition to sustainable mobility.”

Priyank Kharge, Minister for Rural Development & Panchayat Raj, IT & Biotechnology, Government of Karnataka, said, “We are delighted that Tsuyo Manufacturing has decided to expand its Operations in Dharwad, Karnataka. Their decision reinforces our commitment to building a strong, local economy through LEAP (Local Economy Accelerator Program). This project will help building a sustainable ecosystem in the state and will attract more EV companies to come to our state - which is known for its Industry friendly policies and a dynamic EV ecosystem. This investment will not only create high-quality jobs in North Karnataka but also accelerate innovation and green mobility solutions for Karnataka and beyond.”

Comments (0)

ADD COMMENT

Link Copied!

India’s automotive industry, which contributes 7.1 percent to the country’s GDP, is set for a transformation driven by regulatory changes, including GST 2.0 reforms, customs duty adjustments and the Indo–Japan Free Trade Agreement (CEPA) said a whitepaper by Grant Thornton Bharat and the Indo–Japan Chamber of Commerce and Industry (IJCCI). It highlights how these factors are reshaping the competitiveness of the USD 74 billion auto component sector.

The rollout of GST 2.0 in September 2025 has streamlined tax structures, boosting consumer demand across vehicle segments.

• Tax Rate Changes: Small cars and motorcycles under 350cc now face an 18 percent GST (down from 28 percent plus cess), leading to price reductions. Premium vehicles, including SUVs and high-end motorcycles, now have a flat 40 percent GST.
• EV Support: Electric vehicles (EVs) continue to benefit from a 5 percent GST rate.
• Consumer Response: Following the rate adjustments, the small car segment recorded a surge in vehicle deliveries, with booking volumes rising by nearly 50 percent.
• Supply Chain Incentives: Union Budget 2025 announced customs duty exemptions on lithium-ion battery scrap and critical minerals like lead and copper to secure raw materials and support the EV sector.

Sohrab Bararia, Partner, India Investment Advisory, Grant Thornton Bharat, said, “The convergence of GST 2.0 and targeted customs incentives marks a defining moment for India’s automotive sector. Reduced tax rates, simplified compliance, and supply-chain-focused exemptions will not only elevate India’s cost competitiveness but also strengthen its positioning as a manufacturing and export hub for Japanese automakers.”

The partnership between India and Japan, supported by USD 43.3 billion in Japanese investments, is deepening through trade agreements and skill development initiatives.

• Trade Agreements: The India–Japan CEPA and the India–Japan Digital Partnership (IJDP) are fostering innovation in EVs, connected vehicles and AI-led manufacturing.
• Skill Development: Initiatives like the Japan-India Institute for Manufacturing (JIM) are training over 30,000 Indian engineers to Japanese manufacturing standards.
• Exports: Car exports from India to Japan reached USD 616.45 million in the first nine months of FY2025.

Suguna Ramamoorthy, Secretary General Indo-Japan Chamber of Commerce and Industry, said, “There is significant partnership between India and Japan in the automotive sector, particularly in the realms of hybrid and electric vehicles, and high-precision components. The Free Trade Agreement (FTA) serves as a crucial catalyst for collaboration, joint research and development, and knowledge transfer, further supported by the India-Japan Industrial Competitiveness Partnership (IJICP). Recent initiatives have greatly advanced our automotive collaboration, especially in clean mobility and advanced manufacturing. The implementation of the GST 2.0 reform stands as a boon to Prime Minister Narendra Modi’s Atmanirbhar Bharat programme, fostering an environment conducive to growth.”

The sustained policy alignment under GST 2.0, customs reforms and deeper utilisation of the Indo–Japan FTA are expected to drive competitiveness and technology transfer, accelerating India’s journey toward an innovation-led automotive future.

Image for representational purpose only: Credit Mike van Schoonderwalt/Pexels

Comments (0)

ADD COMMENT

Link Copied!

Musashi India, a subsidiary of Japan’s Musashi Seimitsu Industries and a manufacturer of two-wheeler and four-wheeler transmission components, has completed the Phase 2 expansion of its Bengaluru manufacturing facility. The enlarged plant will become fully operational by December 2025.

The strategic upgrade reinforces Musashi’s commitment to India’s automotive and electric mobility sectors. The facility is set to become the Musashi Group's largest integrated manufacturing site under one roof.

The expansion, which adds 11,000 square metres of developed area, boosts the total plant size to 32,000 square metres and introduces new capabilities in forging, machining and heat treatment.

The company has increased production capacity from 4 million to 6.5 million sets of scooter and motorcycle transmissions annually. This move is expected to nearly double output value from INR 5.5 billion to INR 10 billion annually.

The Bengaluru plant will now serve as a hub for both domestic and export markets, catering to multiple categories, including 100–750cc motorcycles, 100–125cc scooters and two-wheeler and three-wheeler e-axles for the internal combustion engine (ICE) and electric vehicle (EV) segments.

The facility incorporates automated technologies such as gear grinding, automated gear checking and camera-based inspection systems, supported by robotic and gantry solutions, ensuring high precision and efficiency. The plant will also function as a prototype and testing hub for ICE transmissions and e-axles.

In line with global environmental, social, and governance (ESG) commitments, the facility features:

• Rooftop Solar: A 2.16 million kWh installation.
• Green Energy: The plant operates with over 96 percent green energy, powered by a mix of hydro, wind, rooftop and captive renewable sources.

These initiatives support Musashi’s global objective of achieving carbon neutrality across its value chain by 2038.

Naoya Nishimura, CEO, Musashi Auto Parts India and Africa Region, said, “The Bengaluru facility expansion marks a significant leap forward in Musashi’s journey of growth and innovation in India. Constructed within just 18 months, it stands as the largest integrated manufacturing facility under one roof within the Musashi Group. This facility embodies our ‘Go Far Beyond’ aim, combining precision engineering, advanced automation and sustainability to create a new benchmark in manufacturing excellence. This development will further strengthen Musashi India’s position as a trusted partner in the global EV supply chain while reinforcing its leadership in next-generation mobility solutions.”

Comments (0)

ADD COMMENT

Link Copied!