New Delhi: Auto component companies are increasing investments in India, looking for new acquisitions and expanding capacities as free trade agreements (FTAs) have opened up new export opportunities for them.Officials from all the companies told TOI that India is fast emerging as a manufacturing and export base, especially for the US and European markets, with recent trade deals improving cost competitiveness.Arvind Chandra, CEO of Tenneco India (a subsidiary of US-based Tenneco Group), said the change in US tariffs has changed the export outlook. “India is becoming an export base for the rest of the world.” Exports now account for 20% of Tenneco India’s order book, including clear air technology and suspension products, which was 5% earlier and is witnessing rapid growth, he said.
French auto component major Valeo is also attacking India with a double whammy. CEO Christophe Perillat said the company will invest more than $237 million to expand its industrial footprint and aims to triple sales in India to about $740 million by 2028. “India is a key pillar of Valeo’s global growth and innovation roadmap,” he said. Valeo commissioned a new plant and an e-axle production line in Pune and is expanding operations at its Sanand facility in Gujarat.Lumax Auto Technologies, an Indian auto component company, said its recent acquisition of IAC India can be seen as a move to deepen engagement with original equipment manufacturers (OEMs). “OEMs are increasingly preferring suppliers who can co-develop and deliver integrated solutions rather than stand-alone components,” said Anmol Jain, MD of the company.Industry executives said as global automakers look to diversify supply chains, India’s improved trade access through FTAs and its growing manufacturing base is positioning the country as a competitive export hub. For component manufacturers, the next phase appears to be about scaling, localizing advanced technologies and using acquisitions to move up the value chain.
