Mahle is taking a significant step in its transformation by refining its corporate structure to enhance agility and efficiency under its 2030+ strategy. The changes involve merging business units to strengthen the core areas of electrification and thermal management, both structurally and operationally. As part of this restructuring, Mahle will acquire the remaining 25 percent minority stake in its thermal management subsidiary, Mahle Behr GmbH and Co. KG, cementing its commitment to this strategic area. The group management board reduced from seven members to four, effective 1 January 2025.

Starting in 2025, Mahle consolidated its five business units into three. Four existing units merged to form two new entities, aligning related production technologies to accelerate internal collaboration and establish a more cohesive operational framework.

“Mahle is doing its homework for the transformation,” said Chief Executive Officer Arnd Franz. He added, “Through these far-reaching changes, we will make our business ready for the future. We are accelerating the implementation of our group strategy which will position us as an innovative and sustainably profitable shaper of future mobility.”

Chairman of the Mahle Supervisory Board Dr. Heinz K. Junker said, “Through the reorganisation and the resulting streamlining of the Management Board, we will significantly improve the integration of our group and be able to make more effective use of synergies.”

The company’s Chief Exectuive Officer emphasised that this reorganisation would not only improve internal cooperation but also provide new opportunities for locations historically tied to combustion engine technologies, enabling them to apply their expertise to emerging, future-oriented sectors. This restructuring is also expected to create a high-performance production network while delivering cost savings.

The new powertrain and charging business unit will integrate the former engine systems and components and electronics and mechatronics units. This move will leverage Mahle’s extensive experience in engine systems to advance its electrification strategy, focusing on efficient electric motors and intelligent charging solutions. A key success in this area is the development of the electric compressor, one of the company’s most prominent products.

Similarly, the thermal and fluid systems business unit will combine the former filtration and engine peripherals and thermal management units. By integrating filtration expertise into its thermal management capabilities, Mahle aims to deliver competitive, future-oriented technologies to the market. The company’s dedication to thermal management is further demonstrated by its full acquisition of Mahle Behr GmbH & Co. KG, completing a process that began with its initial stake in 2010.

The aftermarket division with its established product range and growing focus on electrification and digitalisation will continue as a standalone unit under the new name lifecycle and mobility.

Franz will remain management board chairman and CEO while also assuming the role of statutory Labour Director, as human resources will no longer be a separate function on the board. Dr Beate Bungartz, the current labour director, stepped down on November 29, 2024. Markus Kapaun will continue as Cheif Financial Officer. Jumana Al-Sibai, currently responsible for the thermal management unit, will lead the new thermal and fluid systems business unit. Martin Weidlich, previously in charge of filtration and engine peripherals departed the company on November 29, 2024.

Georg Dietz, presently heading the engine systems and components unit, will lead the new powertrain and charging business unit. Additionally, Martin Wellhoeffer, currently overseeing the electronics and mechatronics unit, will transition to the thermal and fluid systems unit as Chief Operating Officer.

With its restructured organisation, Mahle aims to strengthen its position in electrification and thermal management while ensuring a more agile and cost-effective approach to future challenges. 

“Following several major acquisitions in the thermal management field, this step will successfully complete the integration of this business in the Mahle Group,” said Franz.

Commenting on the development, Junker said: “On behalf of the Mahle supervisory bodies, I would like to thank the management board members Dr. Beate Bungartz and Martin Weidlich, who are now leaving the group, for their excellent and dedicated work. In his five years with Mahle, Weidlich has performed great services both for the filtration and engine peripherals business unit and in his group responsibility for operational excellence, production and purchasing. Over the past two years, Bungartz has successfully continued the development of our human resources organisation and has initiated the transformation dialogue with employee representatives in Germany. Bungartz and Weidlich have my best wishes for their personal lives and careers in the future. Equally, the supervisory bodies and I would like to thank Wellhoeffer for his considerable commitment as a management board member. Under his leadership for almost two years, the electronics and mechatronics business unit has significantly expanded the competences of Mahle in the fields of efficient electric drive systems and intelligent charging. We are convinced that Wellhoeffer will forge ahead with the operational excellence and transformation as COO of what is to be our largest business unit in the future."

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Tier 1 component supplier Sona BLW Precision Forgings (Sona Comstar) has announced its financial results for Q1 FY2027, reporting revenue of INR 13.10 billion, representing a 54 percent YoY growth. EBITDA reached INR 3.03 billion with a margin of 23.1 percent, while profit after tax stood at INR 1.81 billion.

Interestingly, battery electric vehicle revenue reached an all-time high of 44 percent of total revenue, growing by 107 percent YoY.

During the quarter, the company unveiled its Sona Comstar 2.0 strategy and announced its entry into the robotics and physical AI sector, alongside expansion into high-voltage electric and hybrid powertrain systems through a partnership with DENSO Corporation.

Vivek Vikram Singh, MD & Group CEO, commented: “Q1 FY27 marks the unveiling of Sona Comstar 2.0 – our ambition to grow tenfold again over the next decade. As part of this strategy, we announced our entry into Robotics and Physical AI. Our partnership with DENSO also takes us into high-voltage electric and hybrid powertrain systems, completing an important missing piece in our electrification portfolio. The quarter was equally strong financially. We delivered our highest-ever quarterly revenue, BEV revenue and BEV revenue share. Revenue grew by 54 percent YoY, while EBITDA and PAT increased by 49 percent and 45 percent, respectively. BEV revenue more than doubled, and its share of automotive revenue reached an all-time high of 44 percent, despite continued weakness in the US EV market. This demonstrates the increasing diversification of our EV business across customers, products and geographies. We also secured new business across EV, hybrid and ICE powertrains, spanning India, Europe and North America and nearly every product category in which we operate.”

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Schaeffler India has reported its financial results for Q2 and H1 ended CY2026. Revenue from operations for the quarter was INR 26.81 billion, marking a 17.5 percent increase compared to the corresponding period of 2025, while net profit reached INR 3.36 billion.

For H1 CY2026, revenue from operations was INR 51.88 billion, up 18.1 percent YoY, with a net profit of INR 6.56 billion led by growth in the Automotive Technologies, Vehicle Lifetime Solutions and Intercompany Exports segments.

Harsha Kadam, Managing Director and Chief Executive Officer, Schaeffler India, said, “Schaeffler India registered a strong growth of 18.1 percent for the first half of the year. Our Automotive Technologies, Vehicle Lifetime Solutions and Intercompany Exports business continued the double-digit growth trajectory. Even for the quarter, despite a challenging market we recorded a 7 percent QoQ growth. Quality of earnings marginally impacted given cost pressures due to geopolitical developments. Overall, I am happy to share that we delivered on our financial performance consistently, amid volatility in a very dynamic macro-economic landscape. We remain committed on maintaining the momentum for the remainder of the year.”

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The Indian automotive component industry has delivered another strong performance in FY2026, reinforcing its position as a critical pillar of the country’s auto ecosystem and a growing player in global value chains.

According to the Automotive Component Manufacturers Association of India (ACMA), the sector recorded sales of USD 85.9 billion (INR 7,600 billion), marking a healthy 12.7 percent YoY growth. Supply to original equipment manufacturers (OEMs) grew even faster at 16.3 percent, driven by commercial vehicles (13%), two-wheelers (12%) and passenger vehicles (10%). The aftermarket segment expanded by 9 percent, supported by a rising vehicle population and increasing market formalisation.

Exports grew modestly by 5 percent, while imports rose 13 percent, resulting in a trade deficit of USD 1,370 million. Supply to the electric vehicle (EV) segment accounted for 4.6 percent of OEM sales, highlighting the sector’s gradual but steady participation in the country’s electrification journey.

Early indicators for FY2027 are encouraging. Despite global headwinds, Q1 performance has been resilient, underpinned by robust domestic demand and aftermarket growth. “Overall mood in the industry has been very positive. Since the GST 2.0 revision, the auto industry has continued to grow both domestically and in exports, and the component industry has followed suit,” noted Vikrampati Singhani, President, ACMA.

Infrastructure development has further boosted vehicular movement across categories, while demand for both new and used vehicles remains healthy. Several Free Trade Agreements (FTAs) have begun yielding results, with more expected to materialise.

The industry body stated that Europe has emerged as a bright spot for exports, benefiting from favourable trade pacts, even as overall European sentiment remains somewhat subdued. Exports to the region have contributed to an overall industry export growth trajectory around 9 percent in recent assessments.

Export Resilience Amid Geopolitical Challenges

Indian component makers have demonstrated remarkable consistency. North American exports held steady at USD 7.3 billion despite tariff pressures. However, CIS and Baltic region saw a sharp around 40 percent decline, largely linked to minimal trade with Russia.

ACMA noted that in Latin America the automotive industry faces a Section 301 investigation citing unfair labour practices and alleged government subsidies leading to overcapacity – claims strongly refuted by the industry.

Vinnie Mehta, Director General, ACMA, noted that “The auto component industry does not get any subsidy from the government,” pointing out that under the PLI scheme, only 2 out of over 1,100 ACMA members have availed benefits.

He also highlighted ongoing capacity expansions as evidence against overcapacity claims. Top export destinations remain the USA, Germany and Thailand, while imports are dominated by China, Japan, and Germany, with Asian imports (primarily China) reaching USD 17.75 billion, up 19 percent.

The rupee’s 10 percent depreciation helped limit USD growth to 7.1 percent, providing some cushion. Positive developments include the reopening of the Strait of Hormuz and normalisation of LNG routes, which are expected to further ease freight costs.

The split across vehicle segments has remained largely stable: Passenger Vehicles account for 45 percent of OEM sales, followed by Commercial Vehicles (25%) and Two-Wheelers (19%).

ACMA stated that localisation levels average around 70 percent industry-wide, though high-end vehicles and advanced technologies (such as certain drivetrains) lag. The push for deeper localisation, especially in electronics and EV supply chains, continues, with OEMs and component makers collaborating on the third round of related studies.

Leaders expressed optimism that sustained localisation efforts, combined with OEM capacity expansions, could help narrow the trade deficit in the coming years.

Mehta stated that challenges remain in areas like rare earth magnets, where licensing issues persist, and EV supply chains, which are still heavily influenced by China’s cost competitiveness.

Headwinds and Adaptive Strategies

Labour shortages have emerged as a significant, cross-industry issue expected to persist for the next 8-10 years. Factors include seasonal agricultural demands, festivals, elections and rising urban living costs, which have resulted in challenges for industries. Despite this, the automotive component industry has shown resilience – no major production disruptions have been attributed to component shortages.

Furthermore, small and medium enterprises (SMEs) face elongated CAPEX cycles, raw material price pressures and working capital challenges.

The industry is responding through increased focus on digitisation, robotics and automation.

“Opportunities are immense, with many traditional players diversifying into software, electronics and new-age technologies. Today, 7-8 percent of ACMA members are new-age firms and consumer electronics players have also joined the fold. India’s Global Capability Centers (GCCs) in automotive – over 200,000 total, with strong representation in components – are driving significant software and design work domestically,” said Mehta.

Capacity expansion & FTAs

It is no secret that the growing demand for newer vehicles has also led to automakers further expanding their manufacturing capacity, including both greenfield and brownfield projects.

For the automotive component industry, capacity utilisation currently hovers around 70 percent, aligned with peak industry needs.

“As OEMs expand – particularly in emerging hubs like Aurangabad, touted as the ‘next Sanand’ – component makers are expected to follow with corresponding investments,” revealed Mehta.

Furthermore, India’s emergence as a reliable alternative in global supply chains is gaining traction amid diversification away from concentrated sources. FTAs are viewed not merely as duty-reduction tools but as enablers of long-term partnerships.

“US RFQs increasingly seek certified Indian components, bypassing China and boosting Make-in-India appeal. We are hopeful about the EU FTA and potential US BTA, which could significantly elevate India’s share in global auto value chains,” said Singhania.

For the unversed, the automotive component industry in India directly employs around 5 million people, with the broader auto industry supporting nearly 30 million livelihoods. “India is emerging as a strong long-term partner,” stated Mehta.

With twin engines of direct exports and indirect contributions through global customers, the component industry is well-positioned for sustained growth.

FY2027 and Beyond: Cautious Optimism

Going forward, ACMA projects 8-10 percent value growth for FY2027 if current momentum holds, supported by strong Q1 performance and steady exports. While trade deficit reversal will take time – particularly with EV growth and imported advanced technologies – commitment to localisation from both OEMs and suppliers provides a clear pathway forward.

As Singhani summarised, “The short-to-medium-term outlook is positive, with momentum in infrastructure, alternative fuels and technology transitions. Global volatility remains a risk, but the industry’s resilience, adaptability and strategic focus on automation and partnerships signal a bright road ahead for Indian auto components.”

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Schaeffler India, a technology motion company, has received Bureau of Indian Standards (BIS) licenses for its manufacturing plants in Maneja and Savli.

With this, the company becomes the first in the Indian bearing industry to secure BIS certification for Cylindrical Roller Bearings (CRB). Additionally, these locations have received BIS licenses for Deep Groove Ball Bearings (DGBB).

Harsha Kadam, Managing Director and Chief Executive Officer, Schaeffler India, said, "This milestone reflects Schaeffler India's unwavering commitment to quality, operational excellence, and customer trust. Being the first company to secure the BIS license for Cylindrical Roller Bearings under the new standard is a proud achievement for our teams and demonstrates our readiness to meet evolving regulatory and industry requirements. We remain committed to setting benchmarks in manufacturing excellence and supporting the growth of India's industrial ecosystem”.

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