With the liquidity position of the auto components industry comfortable across Tier 1 suppliers particularly, the auto components industry in India is set to witness a revenue growth of five to seven percent in FY2024-25 as compared to the high of 14 percent in FY2023-24.  

The stable cashflows and earnings supporting the comfortable liquidity position of Tier 1 suppliers in particular, the auto components industry in the country, according a ICRA Limited’s report will experience an improvement in operating margins – on a year-on-year basis – of roughly 50 bps in FY2024-25. This would be supported by better operating leverage, higher content per vehicle and value additions. 

The exposure to any sharp volatility in commodity prices and foreign exchange rates a continuing factor, the ICRA report projects that the industry will incur an expenditure of INR 200-250 billion in FY2024-25 towards capacity expansion and technological developments. Capex is anticipated to hover around eight to 10 percent of the operating income over the medium term. Contribution is also expected from the PLI scheme, which has been designed to exert a localisation push for electric vehicle components and technology. 

Providing an over view of ICRA’s take on the performance of the Indian auto industry, Vinutaa S, Vice President and Sector Head – Corporate Ratings, ICRA Limited, mentioned, "Demand from domestic original equipment manufacturers (OEM) constitutes over 50 percent of sales for the Indian auto component industry and the pace of growth in the segment is expected to moderate in FY2025. Growth in replacement demand is pegged at five to seven percent, after two to three years of healthy growth, following a relatively weak Q1 in the current fiscal. Exports, which account for close to 30 percent of the industry’s revenues, are likely to be impacted by subdued growth in end-user markets. Nevertheless, ancillaries will benefit from supplies to new platforms as the global OEMs diversify their vendor base and increase outsourcing.”

The moderation in revenue growth in FY2024-25 expected to stem from a moderation in the growth pace of domestic OEMs, the Indian auto components industry is poised to face the consequences of new vehicle registrations in Europe and the US on the exports front. The markets for vehicles over there are expected to remain tepid over the next few quarters, impacted by the weak global macroeconomic environment and geopolitical tensions. 

The rising supplies to new platforms because of vendor diversification initiatives by global OEMs/Tier-I players and higher value addition are expected to drive growth and stability in the auto components industry. 

An increase in outsourcing should augur well for the Indian auto component exporters and those suppliers that are into metal casting and forgings will experience better traction as plants in European Union wind up on the back of viability challenges. 

The aging of vehicles and rising sales of used vehicles in various markets of the world is expected to ensure good demand for suppliers that are into the aftermarket and export of components for the replacement segment. 

Over the medium-to-long term, the ICRA report mentions that stable growth in the auto components space will be fueled by electric vehicle (EV) linked opportunities, premiumisation of vehicles, focus on localisation and changes in regulatory norms. 

The disruption along the Red Sea resulting in a surge in container rates by two to three times in the year-to-date 2024 calendar year, the auto components industry will need to proactively track and tread caution from a supply chain point of view the sudden increase in shipping time by about two weeks. About two third of the exports from India are the US and Europe.

“ICRA’s interaction with large auto component suppliers indicates that the industry has incurred a capex of over Rs 20,000 crore (INR 200 billion) in FY2023-24 and is estimated to spend another Rs20,000-25,000 crore (INR 20-25 billion) in FY2024-25. The incremental investments would be made towards new products, product development for committed platforms, and development of advanced technology and EV components, apart from capex for capacity enhancements and upcoming regulatory changes. R&D, though, is still at an average of one to three percent of operating income, significantly lower than the global counterparts. ICRA expects auto ancillaries’ capex to hover around eight to 10 percent of operating income over the medium term, with the PLI scheme also contributing to accelerating capex towards advanced technology and EV components,” explained Vinutaa.

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Chinese automotive major Geely Auto has officially launched its i-HEV Intelligent Hybrid technology, which enters mass production immediately with the system slated for deployment across several models this year, including the Preface, Monjaro, Starray, and the fifth-generation Emgrand.

The technology utilises an artificial intelligence system and a dedicated hybrid powertrain to address historical gaps in fuel efficiency and smart feature integration.

The i-HEV system is built upon the i-CMA architecture, a hybrid-optimised version of the CMA platform that centralises the control of driving, cockpit and chassis functions.

A primary feature is the AI Cloud Power management system, which monitors exterior data such as temperature, humidity and altitude to optimise petrol-electric energy distribution. The company reports that this self-optimising strategy improves energy efficiency by more than 10 percent, while the engine achieves a thermal efficiency of 48.41 percent.

By decoupling the internal combustion engine (ICE) from the electric motor, the i-HEV adopts a motor-led layout designed to provide an electric-drive experience without external charging. The electric motor delivers up to 230kW, allowing the vehicle to operate on electricity for approximately 80 percent of the time. Performance data indicates a claimed zero to 30 kmph acceleration time of 1.84 seconds and a top speed of 66 kmph in electric mode.

The i-CMA architecture incorporates physical separation between oil and electric systems to enhance safety. Battery protection is managed through the Geely Battery Safety System, which includes a liquid-cooled battery with an IP68 resistance rating. The system is capable of real-time prediction for over 50 fault types.

Jerry Gan, CEO, Geely Auto Group, said, “Energy diversification is a strategic foresight for Geely Auto. A company’s true strategic focus is ensuring every path leads to the future, which tests the technological depth and powerful energy resilience of our entire system. The new i-HEV perfectly embodies this resilience, serving as a powerful testament to how artificial intelligence can elevate hybrid efficiency and performance to new industry standards.”

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Tsuyo Manufacturing (Tsuyo), an electric vehicle (EV) powertrain manufacturer, has been named as one of 15 Indian startups selected to represent the country in the deeptech category as part of the CII CIES Startup Delegation to Japan 2026.

The selection allows Tsuyo to engage with Japanese corporations during a period of increased EV expansion in Japan, aiming to establish long-term collaborations in engineering and supply chain integration.

The company specialises in electric powertrain solutions for three-wheelers, light commercial vehicles and heavy commercial applications, with a portfolio ranging from 0.5 kW to 400 kW.

Till date, Tsuyo has sold more than 200,000 motors and maintains partnerships with over 50 original equipment manufacturers (OEMs). The firm operates two manufacturing facilities in Greater Noida and focuses on research and development in collaboration with institutions such as the IITs and NITs.

In addition to its international engagement, Tsuyo recently received Single Window Clearance from the Government of Karnataka for a 20-acre manufacturing and validation campus in the Dharwad–Hubli region. This facility is intended to serve as a hub for the design, testing and large-scale production of powertrain components, reducing the domestic industry’s reliance on imported technology.

Vijay Kumar, Founder and CEO, Tsuyo Manufacturing, said, “Being selected for the CII CIES delegation is a proud moment - not just for Tsuyo, but for the evolution of India’s deeptech ecosystem. At Tsuyo, we see ourselves as a new age EV deep tech startup focused on co-creation, where innovation is built collaboratively across borders. India has the potential to engineer and scale world-class EV powertrain technologies, designed for real-world conditions and global applicability. Japan represents a strong strategic partner with its legacy of engineering excellence and disciplined manufacturing culture. Through this engagement, we aim to explore joint development opportunities, enable deeper supply chain integration, and contribute to the broader ‘Build India’ vision by strengthening local capabilities with global collaboration. Our approach to co-creation goes beyond technology - it extends to building robust supply chains, advancing futuristic mobility solutions, and aligning with the high standards of Japanese engineering. This is how we believe India will transition from being a growing EV market to a globally competitive EV technology hub.”

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Ola Electric has introduced the S1 X+ 5.2 kWh electric scooter, featuring the company’s indigenously developed 4680 Bharat Cell. The company claims that the launch marks the first time this cell technology has been integrated into a mass-market product. The e-scooter is available at an introductory price of INR 129,999 until 15 April.

The S1 X+ 5.2 kWh utilises an 11 kW mid-drive motor and an integrated motor control unit, providing a claimed top speed of 125 kmph and an IDC range of 320 km. It features a brake-by-wire system and front disc brakes. The use of the Bharat Cell reflects the company's strategy of vertical integration, which encompasses cell development, battery pack engineering and vehicle manufacturing.

Currently, Ola Electric’s portfolio includes the Gen 3 S1 scooter series and the Roadster motorcycle range. The S1 Gen 3 line-up consists of the S1 Pro+ and S1 Pro in various battery configurations, while the mass-market segment includes the S1 X+ and S1 X variants. The Roadster series is offered in X+ and X configurations with battery capacities ranging from 2.5 kWh to 9.1 kWh.

“With S1 X+ 5.2 kWh, we are taking our 4680 Bharat Cell to the mass market at scale. The same technology platform we built for our most advanced products is now powering a scooter designed for much wider EV adoption. This is exactly what vertical integration enables - the ability to innovate deeply, scale quickly, and bring our best technology to more and more customers, faster. S1 X+ 5.2 kWh is where performance, range and scale come together, and is another important step towards making EVs accessible to every Indian,” the company said in a statement.

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Bosch and Qualcomm Technologies, Inc. have announced an expansion of their strategic collaboration to include Advanced Driver Assistance Systems (ADAS). This move builds upon their established partnership in cockpit solutions and aims to address the automotive industry's requirement for scalable technology in automated and connected vehicles.

Bosch stated it has now delivered more than 10 million vehicle computers globally using Qualcomm’s Snapdragon Cockpit Platforms.

The extended agreement includes new production programmes for ADAS that utilise Bosch’s vehicle computer architecture powered by the Snapdragon Ride platform. A central component of this collaboration is the development of platforms that combine cockpit and ADAS functions on a single system-on-chip (SoC).

This integration is designed to align with the strategic shift towards software-defined vehicles, allowing automakers to reduce architectural complexity, power consumption, and manufacturing costs.

The Bosch ADAS integration platform is designed as a modular computer capable of fusing data from multiple sensors to create a 360-degree environment model. This system supports a range of functions from entry-level assistance, such as lane keeping and distance regulation, to higher-level automated driving. The joint engineering efforts have already secured several design wins in the East Asian market, with the first vehicles featuring these consolidated platforms expected to enter the market in 2028.

By migrating from numerous individual control units to a small number of high-performance computers, the partnership provides a path toward centralised vehicle architectures.

These solutions are engineered to meet safety standards up to ASIL-D while enabling consumer features such as hands-free driving and intelligent automated parking across various vehicle segments.

Christoph Hartung, Member of the Bosch Mobility business sector board, said, “By combining leading-edge compute technology with our system integration expertise – hardware, software, and safety – we enable automakers to meet the rising demand for personalised, safe and comfortable driving experiences. The growing success of our collaboration with Qualcomm Technologies underlines a central value Bosch brings to the industry: we provide the robust, high-performance computing platforms that form the backbone of today’s software-defined vehicle.”

Nakul Duggal, EVP and Group GM, Automotive, Industrial and Embedded IoT, and Robotics, Qualcomm Technologies, said, “Our collaboration with Bosch spans the full spectrum of vehicle compute – from high‑performance cockpit systems to scalable automated driving solutions and emerging centralised vehicle architectures – all powered by Snapdragon Digital Chassis automotive platforms. ADAS is where performance and safety must scale in the real world. By expanding our work with Bosch into production-ready ADAS platforms, we’re helping automakers bring advanced driver assistance across vehicle lines more efficiently, with a clear path to centralised compute.”

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