Automotive component manufacturer Tenneco Clean Air India has announced its financial results for the Q4 and FY2026. The company, which supplies emission controls, powertrains and suspension systems to original equipment manufacturers (OEMs), reported a value-added revenue (VAR) increase of 17.5 percent YoY for Q4 and 12.3 percent for the full fiscal year.

The company said it utilises value-added revenue as its primary performance metric to exclude pass-through substrate costs from its operations.

For Q4, value-added revenue reached INR 14,058 million, up from INR 11,963 million in the corresponding quarter of the previous fiscal year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter stood at INR 2,573 million, representing an 18.3 percent margin on value-added revenue. Profit after tax (PAT) for Q4 grew 19 percent YoY to INR 1,668 million, yielding an 11.9 percent margin.

For FY2026, total value-added revenue rose to INR 54,040 million compared to INR 48,904 million in FY2025. Full-year EBITDA reached INR 9,255 million, establishing a margin profile of 18.8 percent. Annual profit after tax concluded at INR 6,044 million, equivalent to a 12.3 percent margin, while return on capital employed (ROCE) increased to 94 percent from 57 percent in the prior fiscal year.

The company's revenue streams are divided across two core business segments:

• Clean Air & Powertrain Solutions: Generated INR 6,905 million in Q4 FY2026 and INR 49,180 million for the full fiscal year.
• Advanced Ride Technologies (ART): Generated INR 7,153 million in Q4 FY2026 and INR 24,885 million for the full fiscal year.

The total cumulative lifetime order book, excluding programs already in active commercial production, reached INR 124,000 million as of 31 March 2026. This order volume encompasses the revenue targets set by management for the fiscal year 2028.

During the fiscal year, Tenneco India secured several development contracts across its operating divisions, including the selection of its advanced suspension system for a vehicle platform by an Indian SUV manufacturer.

Additional contracts were signed with a Japanese passenger vehicle manufacturer for emission systems, a European commercial vehicle manufacturer for aftertreatment solutions and an Indian commercial vehicle manufacturer for an engine platform. The company also executed a technology proof-of-concept for a Euro VII emission control layout with a European truck manufacturer and secured a contract for bearing systems with a Japanese passenger car OEM.

To accommodate current order volumes, the company has approved a total capital expenditure allocation of INR 1,400 million. The investment framework funds the construction of two production sites: a greenfield manufacturing plant for Clean Air Systems located in North India, alongside a greenfield facility for Advanced Ride Technologies located in West India.

Arvind Chandra, Whole-Time Director and CEO, Tenneco India, said, “Over the past few years, the team has worked diligently to build a resilient, diversified and execution led business model. This was clearly demonstrated during the quarter and the year under review. Despite geopolitical headwinds since the end of February 2026 and the incremental overheads associated with becoming a listed entity, the team delivered a FY2026 double-digit topline growth at 12 percent and, more importantly, a strong operating performance with the highest-ever EBITDA margin at 18.8 percent. Supported by a strong and expanding order book, we continue to proactively scale our manufacturing capabilities to meet rising customer demand. In addition to the recently announced expansion in Northern India of INR 710 million, we plan to expand our manufacturing presence in Western India with an investment of INR 690 million, leading to a total of INR 1,400 million. These strategic capacity additions position us well to capture incremental growth opportunities, strengthen customer partnerships and support long term value creation. We recently completed a strategic Proof of Concept with a leading European Truck OEM for a Euro VII–compliant Clean Air solution, thereby strengthening capabilities in advanced emission technologies and readiness for future legislations. Also, we were honoured with the Zero-Defect Supplier Award by Toyota in the ART business, underscoring our commitment to operational excellence. In addition, we secured a strategic entry into the engine bearings business at a leading Japanese OEM, due to superior product technology, better quality and longstanding business relationship across other product verticals. Our H2 FY2026 order book addition stands at INR 60,254 million. Combined with the previously announced H1 order book, net of orders currently under production, the incremental lifetime order book reached INR 124,000 million as of March 31, 2026. This robust order book provides strong revenue visibility covering more than 100 percent of FY28 target revenues underpinning a healthy double-digit CAGR trajectory.”

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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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French tier 1 supplier Valeo has announced the appointment of Jean-Luc Terrasse as the CEO of Valeo Light Division and Group Executive Vice-President, effective 1 July 2026. He succeeds Maurizio Martinelli, who is set to retire after spending close to 26 years at Valoe.

In his new role, Terrasse will report to Christophe Perillat, CEO of Valeo, and will also join the Executive Committee.

Terrasse has held leadership roles in operations across Europe and South America during his three-decade career. He first joined Valeo in 1989 and has served in business units including Engine Management Systems, Body Electronics and Special Lighting Products. In 2016, he became Vice-President of Valeo’s Wiper Systems group.

During his career, he has worked with the likes of Alstom Grid, Johnson Controls Automotive and Safran.

Christophe Perillat, said, “The LIGHT division plays a key role in our strategic plan ELEVATE 2028, through its road map towards profitable growth and the promise of a safer mobility. Jean-Luc has extensive knowledge of the market and a deep knowledge of Valeo’s culture and industrial excellence. I am fully confident that in his new role as CEO of the Valeo Light Division and Group Executive Vice President, he will continue driving international growth and be invaluable as we continue to pioneer the future of automotive security and comfort.”

“On behalf of the Group, I warmly thank Maurizio Martinelli for his 26 years of dedication to Valeo, notably as CEO of Valeo Light Division. Maurizio played a key role in building our technological leadership. We thank him for his exceptional impact and wish him a very happy and well-deserved retirement,” said Terrasse.

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German component supplier Knorr-Bremse will present technologies for zero-emission commercial vehicles at the IAA Transportation 2026, Hanover. The company aims to provide system solutions to help manufacturers reduce CO2, noise, oil and particulate emissions.

The company is set to showcase Electric Vehicle Motion Control (eVMC), wherein the software is designed to optimise energy recovery through brake control within the Global Scalable Brake Control (GSBC) system.

A Electric Power Steering (EPS) system scheduled for launch in 2027 that operates on a power-on-demand principle to reduce energy consumption.

An oil-free electric air supply system designed for efficiency across various vehicle platforms. The Multi Tumble Piston (MTP) Compressor is set to debut at the IAA Transportation 2026.

A eSilencer component developed to lower noise emissions from pneumatic braking systems to 68 dB(A).

Lastly, a liquid-cooled Power Resistor (iMEP) system intended to provide braking performance independent of battery state.

Bernd Spies, Member of the Executive Board, Knorr-Bremse, said, “Zero emissions in road transport remains our clear goal. At the same time, we see very different paces and framework conditions for this transformation around the world. In this environment, Knorr-Bremse is a stable and reliable development partner for commercial vehicle manufacturers. We bring together technology, regulations, and cost-effectiveness – with flexible system solutions on the path to zero-emission commercial vehicles, without compromising on safety and performance.”

To address the EURO 7 standard, Knorr-Bremse has developed wheel end technologies, including the SYNACT disc brake family. These systems feature Active Caliper Release (ACR) and an NVH toolbox to manage noise and fuel consumption.

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