L-R: Sunil Patel, Founder & CEO, Matel and Netaji Patrio, Co-Founder & CMO, Matel.

Mechatronics company Matel Motion & Energy Solutions (Matel) has raised Rs 1.3 billion in a Series B funding round led by UC Impower, along with new investor Catamaran and participation from existing backer Transition VC.

Founded in 2017, Pune-based Matel develops motors, motor controllers and integrated powertrains for automotive and industrial uses, including electric vehicles, pumping and cooling systems. The company manufactures permanent magnet synchronous motor (PMSM)-based IE5 industrial motors and is developing an IE6 product line. It also produces magnet-free motor designs to mitigate supply chain reliance on raw materials. Matel supplies components to original equipment manufacturers in two-wheeler, three-wheeler and industrial sectors.

The capital will be used to expand manufacturing capacity, advance research and development infrastructure, enlarge product offerings for commercial electric vehicles, and expand international distribution channels.

Sunil Patel, Founder and Chief Executive Officer, Matel, said, "Securing this funding is a significant milestone for Matel, but more importantly, it is a testament to the incredible hard work of our team and the trust our early customers have placed in us. We founded Matel to address a major vacuum in Indian industries by delivering locally designed and developed energy-efficient mechatronics products and this investment allows us to double down on our mission. With this capital, our primary focus will be accelerating our product roadmap with advanced R&D infrastructure and expanding state-of-the-art manufacturing set-up. We are thrilled to welcome New Investors (UC Impower and Catamaran) as our new partners in this journey, and we are deeply grateful to our existing investors (Transition VC, Gruhas and Haresh Abichandani) for their continued belief and support from day one."

Netaji Patro, Co-Founder and Chief Marketing Officer, Matel, said, “We are incredibly excited and grateful for the trust our investors have placed in our vision. The unwavering commitment of our existing investors, who have chosen to double down and reinvest in this round, is the ultimate vote of confidence in our growth trajectory. In addition to R&D, and manufacturing capacity expansion, this capital will support expanding our product range and entry into the Electric CV segment as well as broadening the company's international footprint to acquire new customers worldwide.”

Richa Natarajan, Co-Founder and Partner, UC Impower, said, "Energy efficiency will be one of the defining themes of the next industrial cycle, and companies that own core technology will create disproportionate value. Very few companies combine deep motor technology, power electronics and software into a single platform - and fewer still have translated that capability into products being adopted by leading OEMs. Matel has done both. We believe the company is building category-defining technology for the future of electrification, with the potential to become a global leader in energy-efficient motion systems. We're excited to partner with Sunil, Netaji and the team as they build an enduring technology company from India."

Shantanu Chaturvedi, Partner at Transition VC, said, “Matel isn't just a motor manufacturer; they have demonstrated the ability to be an integrated drive solutions platform across segments like Industrials, EV, Auto ancillary and multiple others. We saw Matel having the capability to build the platform the world needs when we earlier invested, and that is exactly how this has panned out, making doubling down in this round a no-brainer. Super excited to work with the incredible team.”

Deepak Padaki, President, Catamaran, said, "Catamaran's investment in Matel reflects our continued conviction in India's precision engineering and advanced manufacturing ecosystem, and marks a deepening of our exposure to companies building core, IP-led hardware technology. Matel is in mission mode, and we are confident of its ability to scale given its engineering talent, in-house R&D, process expertise and OEM traction. We look forward to supporting Sunil, Netaji and the team on their journey."

The management team is led by Patel, who previously headed the Chetak EV development program at Bajaj Auto and Patro, who held research and development leadership positions at Maruti Suzuki India and Bajaj Auto.

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.

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.

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."

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.”