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TVS Celebrates 20 Years of Apache, Eyes Premium and Global Push

Darshan Nakhwa — Sat, 06 Sep 2025 19:08:06

TVS Motor Company marked a landmark moment on Saturday as its Apache brand completed 20 years, a milestone few Indian motorcycle brands have achieved. From its debut in 2005 as a track-inspired street bike to becoming a global name with over 6.5 million riders across 80 countries, Apache today stands as a symbol of performance and racing. "It's rare to see a brand sustain momentum over two decades. Apache has evolved into a global phenomenon and proudly reflects its Indian origins," said Gaurav Gupta, President, India two-wheeler business, TVS Motor.

To celebrate 20 years of the Apache brand, the company launched special anniversary editions of its RTR and RR series, alongside upgraded 4V variants of the RTR 160 and 200. Looking ahead, TVS sees Apache entering its third decade with renewed confidence and potential entry into higher-capacity segments. The company also sees fresh tailwinds at home, with GST reforms expected to boost demand during what could be one of the most buoyant festive seasons in recent years.

Here's an edited excerpt from the interview with Gaurav Gupta, President of TVS Motor Company's India two-wheeler business, and Vimal Sumbly, Head of Premium Business and Marketing.

Congratulations on 20 years of Apache. How significant is this milestone, and if you had to define the brand in three words, what would they be?

Gupta: This milestone is truly significant. It's rare to see a brand sustain its momentum over two decades. And it's not just about completing 20 years, but also about what Apache has achieved in that time. The brand has grown into a global phenomenon, connecting with over 6.5 million riders and establishing a presence in more than 80 countries. To sum it up, we have a global brand that proudly reflects its Indian origins. And when I think of Apache, three words come to mind: performance, passion, and racing.

As Apache enters its third decade, what is the broader vision in terms of new launches, technology, and displacement?

Gupta: Historically, Apache has pioneered several firsts in its segment from dual-channel ABS to other advanced technologies. These innovations have not only helped us engage with customers but also positioned Apache as a brand that consistently delivers "what's new" and "what's in it for me" from a customer's perspective.

Today, we offer a range from 160cc to 200cc across more than 80 countries. At TVS, customer obsession is one of our core values. We continuously study evolving needs and behaviors in a rapidly changing global consumer landscape. Whether it's premiumization, personalization, or shifting usage patterns, we adapt to stay ahead. With this approach, we won't rule out entering new segments or expanding our global footprint, and that journey will certainly continue.

With cleaner mobility solutions like electrification and CNG gaining attention, how does Apache balance its racing DNA with these emerging requirements?

Gaurav Gupta: We've always explored new technologies, new segments, and new geographies for our products, and that will continue. What drives us is the customer. If consumer needs evolve, our teams study them and work towards delivering the right solutions. We're fortunate to have close collaboration across engineering, R&D, design, and the front end, which helps us create engaging products supported by strong service.

It's difficult to single out one fuel type and say we'll only participate there. The landscape is evolving with many factors such as technology, policy, regulation, supply chain strength, and sustainability. All of these influence what we offer to customers.

We actively track customer profiles and product strategies across multiple brands, and Apache is one of the brands we are most proud to have built over 20 years. The journey ahead, we believe, will be even more exciting.

Recently, there has been a lot of talk about E20 fuel, and ethanol blending is only expected to increase in the future. Where does this leave brands like Apache in terms of performance?

Gaurav Gupta: Our current products are compatible with existing fuel offerings, including E20. We understand that migration will bring certain requirements and ground realities, but as of now, in simple terms, we are compatible with E20. In terms of performance, the implications are standard across most products in the marketplace, and that will continue.

While the Apache 160cc and 200cc models have grown strongly, the 310cc range hasn't kept pace despite premium two-wheelers gaining traction over the last few years. How will you strengthen Apache in this space?

Gaurav Gupta: The Apache family's trajectory has been very encouraging for us. Apache continues to grow within its category, which motivates us to keep investing and working on future opportunities whether that's exploring new segments, new geographies, or new formats. That journey will continue.

Vimal Sumbly: If you look at Apache, the 160cc to 200cc models mainly cater to youngsters and enthusiasts who want performance on the road. In the 310 series, we currently have two products. The RR 310 is already the number-one sports bike in its segment, and sales have been growing every month.

As a brand, we place a strong emphasis on the 300cc space and aim to own it. Together, the two products in this range have given us strong momentum. These are powerful, premium bikes, and they are our "hero products."

Even this year, from Q4 onwards, the 310cc series has shown healthy double-digit growth. At TVS, we are very retail- and Vahan-driven; we don't bill to stock but focus on catering to customer demand. Within that framework, we're seeing very strong traction. That is why we've continued to invest in this segment—if the products weren't performing, we wouldn't. The strong demand gives us confidence.

Have the recent GST reforms had any measurable impact on dealer-level inquiries for the Apache range? This is also likely to renew focus on the entry-level performance segment.

Gaurav Gupta: We are very grateful to the government for this move. It's a well-thought-out simplification and an empowerment initiative for India's middle-class customers. At TVS, we appreciate that it directly enhances buying power and makes motorcycles, scooters, and two-wheelers more accessible to consumers. This had been a long-standing demand to bring prices down, and it has been successfully addressed.

We were already looking forward to a strong festive season. Several factors pointed to this: encouraging monsoons, stable and growth-oriented macroeconomic fundamentals, and supportive repo rates enabling consumers to buy the products they desire, especially in our segment. The GST reforms have only amplified this momentum.

So, we are expecting a very active and buoyant festive season, and in fact, I anticipate the positivity extending well into the end of the year.

Q&A: Mahindra's Nalinikanth Gollagunta on Upcoming Festive Season, 'Bold' Design Choices

Darshan Nakhwa — Sun, 31 Aug 2025 22:48:54

Mahindra & Mahindra is in the midst of its most ambitious transformation yet, backed by a ₹27,000 crore investment plan, a new greenfield plant, new vehicle platform, and a sharpened focus on both electrification and global expansion.

In an exclusive conversation, Nalinikanth Gollagunta, CEO of M&M’s Automotive Division and Executive Director of Mahindra Electric Automobile Ltd. discusses how the SUV maker is preparing for the festive season, leveraging digital tools to align production with real demand, and managing the transition from a supply-constrained to a demand-driven market.

He also shares insights on the company’s EV strategy under the INGLO platform, its approach to the NU_IQ architecture, global expansion priorities, and how Mahindra plans to sustain mid-teen growth in a muted industry environment.

Mahindra has announced a ₹27,000 crore investment plan, a greenfield plant, and a strong global push. How do you ensure that M&M keeps pace with the changing market dynamics? There also seems to be a notable gap between Vahan data and wholesale numbers; how do you read the current demand scenario?

I'll break it up into the first quarter and beyond the first quarter. If you take just the first quarter, first FY quarter, if you see, our Vahan growth was the same or slightly more than our billing growth. Our billing growth was 22%, our Vahan growth was 22.5% or something like that.

So, I want to keep that quarter off, because very clearly, our Vahan growth was keeping pace with that. In fact, in the last 6 months, our Vahan growth was slightly more than our billing growth. In July and August what you have seen is pure stocking.

For us, we are very clear about what we are trying to do. I'll go back to the first point you made, the sentiment in the market. That's an important aspect. I don't think anybody can discount that fact. Our view at this point in time from what we are seeing as signals in the market is that the festive will get some optimism back into the market.

And we don't want to lose the opportunity. We want to ensure that it goes off the shelf. So, in that sense, there is a little bit of a push from our side to make sure that we are ready for it. But we are calibrating in terms of where we are putting it. Which variants we are putting in and what we are doing. So, one of the things we have done over the last couple of years is a massive digitisation of our entire forecasting and sales pipeline through ConnectSys.

Mahindra posted strong growth in Q1 FY26. What’s your expectation for the festive season, given that the base in H2 is higher?

We stick to the mid to high teens projection. But let me answer the question in two different ways. Last year, the festival season we had very small (Thar) Roxx (volume) in it. This year, we have full-on Roxx (volumes) coming in. We have the fungibility to go all the way to 9,000-9,500 units just on Roxx.

That didn't exist last year. Thar Roxx continues to have strong traction. Secondly, our BEVs weren’t available last year. That's new capacity and new demand we have added. So, you can do the math. My average last year was 45,000 billings. To achieve mid-teens (growth), I need to do 6,500 extra units. Provided the rest of it stays where it is.

How is the rest of the portfolio performing?

The Thar and the XUV 3XO petrol capacity has grown. Last year, if you look at it, the government and the institutional business of Boleros were not that great. And, if you do the basic comparison, you start to see that Boleros have come back to the traditional level where they are at. So, that gives me some confidence. Scorpio is doing extremely well.

Scorpio N is going strong and that to me is a 14,000-15,000 units portfolio. The piece which needs a refresh is the XUV 700. So, there could be a little bit of numbers going down, but my Bolero, Scorpio N, Scorpio Classic is helping. The new XUV 700 will come in the fourth quarter. Overall, the base remains solid, and incremental growth will come from new introductions.

Yet, overall market demand seems muted. Do you agree?

For the industry, yes, demand is subdued. But, the way we look at it is that customers get excited when you put products out there which are exciting. It's a reflection on the OEMs rather than a reflection on the market. So, when we say it's a muted market, that’s because it's a muted launch scenario. Where are the exciting products? So, our view is that when the exciting products come, the market will get excited.

Any new launches for the festive season?

During the festival we don't have much coming in. But we have done some variant tweaks. We saw good traction on XUV 3XO Rev-X. And, we did some tweaks on Scorpio N, which is also helping us quite a bit. So, we are well set in that perspective. We might have a couple of surprises, but those are minimal pieces we will play around with, but not much for the festive. The big launches are lined up post festive season.

You’ve addressed EVs with the INGLO platform. With NU_IQ, are you now looking to cater to the core market where Mahindra doesn’t yet have a strong presence?

In larger vehicle categories, like 4.5-4.6 meters, we are in a bit of a unique place where we actually have three products, and they are in the same price band, but they cater to different segments. We believe the 4.3 meter segment is getting to a point where the customers are actually sophisticated enough.

There's a distinct segment which won't overlap. And that's generally where our products start to play out. Our products have character, but they also turn off some customers. But that's okay for us because then it helps me carve out a very clear niche. And if I'm able to put two products which carve out separate niches, I capture the market. Rather than putting one large volume product in the space and say that this is the product which will capture everything in that space. That's the way we're looking at it.

Last year you clocked 20% growth, and this year you’re guiding for mid-teens. What’s the long-term vision for Mahindra, say by 2030?

It's hard to predict what the volumes will look like. Our job is to put out products which excite customers and encourage them to buy. This market is different from the market 20-25 years ago when people held a car until they were forced to replace the car. This is a market which replaces when they get excited. So, it's in that sense demand-driven based on what your portfolio looks like. Our goal is to be the No. 1 SUV player by revenue market share.

Mahindra has spoken about global ambitions for years. But exports are still relatively small. Why?

If you look at the capacity that we are adding that says it all. We won't put capacity if we don't have conviction that we'll be 80%-85% of the business. The way we look at it is we would rather go slow and steady than going too fast and having duds in the market. We are doing it in a calibrated way.

We want to make sure every product lands well and does well. For the last couple of years we have seen good growth in exports. The challenge is people do comparison with the other global OEMs who do sizable exports out of India. Their brand is already built (globally). We have to do the hard work of building the brand and then sell. We want to do it the right way.

So, what are the priority markets? South Africa, Australia we heard. What other markets are on your radar?

The UK is definitely something we are looking closely at from BEVs perspective. We have products which help us there. There are some unique LHD markets like Chile and a few other places. which have an audience which appreciates our products. The Middle East is an area where we are starting to expand. We are also looking for good partners that we can play with sustainably.

So, we will take it as it happens. And even in places where we are present like South Africa and Australia, we still have significant headroom to grow. We have just gone from having one product to now having three products in these markets. We are yet to tap into the full market. XUV 3XO has been a great learning experience for us.

XUV 700 if you look at it, it was diaspora led growth. People came to India on vacation, saw the product, loved it, went back, saw the product there and started to buy. XUV 3XO is the first time where you see non-diaspora coming and buying the product. Which is a good sign.

Nepal and Sri Lanka have seen a dramatic change when it comes to electrification. The Nepal market has been captured by Chinese OEMs. And even in Sri Lanka, there's a lot of action. As a SARC country, and as a leading player with good presence, how are you seeing Nepal and Sri Lanka as markets?

Those are interesting markets. In some ways, adjacent markets to play in. By the way, we launched BEVs in Nepal two weeks ago. We'll see how it plays out. We'll continue to play and learn. But just from a headroom to grow, from the size where we are, we'd love to do well.

Chinese OEMs are the next benchmark for all of us. It's quite clear. I'm not surprised they are doing well and not just in these two markets. So, when we're putting out our products, we're looking very closely at these benchmarks. What we have to put out to stay as confident.

We will fight it out in the market, and let the customer decide. That's the view I have. But wherever I go, I want to make sure I have a right to win and I have an ability to stay in the market. So, we'll see how it plays out.

Could you elaborate on this digitisation initiative? How does it help bridge the gap between actual demand and production?

It's a work in progress. I don't want to say that it's solving everything. But it's already starting to show interesting trends for us to work with. At a fundamental level, what it does is on a monthly basis, my dealers now write down to the last detail what product they want next month.

So, I have a clear view of what each dealer wants. And I also know what the retail momentum for a dealer is and what he/she is selling. And then we look at it and say, okay, do you really want this or why are you asking for this? The new program helps us align production, manage parts commonality, and adjust for seasonality. In short, we can now plan end-to-end in a much more agile manner.

How different is this process compared to earlier?

A lot of this was done in Excel earlier and often after the fact. Now, we're able to do it ahead of the fact and we're able to use digital systems to figure out demand patterns or red flags that we're starting to see. We couldn't do it earlier at that level. The system was piloted over the last couple of years and rolled out two months back.

Does the platform leverage AI tools?

It has some aspects. A digital platform has been put in place and we'll get to the AI part. AI works only when you have a lot of data to play with. We're starting to get to a point where we can collect data from it. Just the digitisation gives a lot of visibility now. So, when I do my planning on a weekly basis now, if somebody says that I have a shortage of this product, I can instantly say that translates to A, B, C from a supply perspective.

And say that it's not just a shortage of the product, it's because of just these three components. Then the question is, instantly I can go back to the supplier and say, what can I do to make this happen? That agility is much more now than what used to happen. Earlier it would take two weeks. Now I can do it in a one-hour meeting. So, that helps move faster.

How has the response been so far?

Encouraging. The real risk is when the market shifts from supply-constrained to demand-constrained and OEMs miss the signal. That's when you get into real trouble. Because you are thinking, this is a supply-constrained market, so keep producing. And you don't know when that switch happens. Our system now helps us detect demand weakness at the variant level itself. So, then I can start to close those spigots off or put demand generation measures proactively.

But isn’t your primary data source still dealers and field executives? Do they have the ability to predict consumer demand accurately?

The primary source is the retail momentum–what is selling off the shelves and what is not. So, we are giving them all that data. We are giving dealers data about preferred products, variants, colors sold over a few months. We are also equipping dealers with historical sales trends during the festive season.

This data didn't exist for them in one place to look at. We are hoping that it leads to a point where dealers can start to make educated decisions. And even when they don't, we can look at data and say that you just put some order, but in reality, this is the number you need.

Tata Hitachi’s Next Act: Mining, Exports, and Electrification to Power Growth

Yukta Mudgal — Fri, 15 Aug 2025 12:38:26

Tata Hitachi is gearing up for its next growth chapter with three clear priorities: ramping up exports, deepening its dominance in mining equipment, and accelerating the shift towards electrified machines. The Rs 5,200-crore company plans to more than double exports over the next five years, assemble high-value mining trucks locally, and commercialise its first Electric-powered excavator in a near future.

These moves come at a time when the Indian construction equipment (CE) market is experiencing both rapid expansion and intense competition. Infrastructure spending by the government has pushed excavator sales to the 30,000–32,000 unit range, but the number of active players has surged from just four or five a decade ago to over a dozen today. Chinese brands, in particular, have shaken up pricing and credit norms, forcing established players to redefine their value propositions.

For Managing Director Sandeep Singh, these challenges are not new. They are the next phase in a journey of transformation he has led since taking charge — a journey that began with stabilisation and is now about strategic expansion.

From Restructuring to Revival

When Singh took the helm, the 40-year-old joint venture between Tata Motors and Hitachi Construction Machinery (HCM) was in the red. Operational inefficiencies, a scattered manufacturing footprint, and intense price competition were eating into margins.

Singh’s early playbook was about consolidation and focus: shutting underutilised plants, streamlining the product range, vendor base, cutting waste, and investing in brand-building and dealer engagement. With India’s CE market still recovering from cyclical downturns and government policy shifts, these moves helped build a resilient base. Within two years, Tata Hitachi had returned to profitability.

“The fundamentals were clear — build customer trust through quality and service, simplify operations, and strengthen our market position,” Singh says.

Defending Share in a Crowded Excavator Market

Excavators remain Tata Hitachi’s bread-and-butter, accounting for the majority of its 8,300 annual sales. The company holds a 23% share, down from 30% earlier, as more manufacturers — including Korean, Japanese, and Chinese brands — entered the fray.

In a market where price pressure is relentless and finance-led sales models are gaining ground, Tata Hitachi has leveraged its quality, service reputation, and localisation capability to remain relevant. Singh’s counter to Chinese aggression was to compete with them with value proposition on cost competitiveness while keeping product quality reliability intact.

“We’ve contained Chinese penetration in India because customers know our machines deliver higher uptime with low cost of ownership,” he notes.

Mining as a Growth Engine

Mining has emerged as a strategic high-margin vertical. Tata Hitachi now commands over 30% share in the mining excavator segment and is winning landmark orders — including 190-ton and 360-ton models worth over Rs 20 crore each, as well as hybrid-electric dump trucks.

The mining segment is seeing renewed activity on the back of coal production targets and large private-sector mining investments. Equipment reliability, higher utilisation and fast turnarounds are critical, giving Tata Hitachi a strong advantage.

The company also runs a certified refurbishment programme, extending machine lifecycles beyond 40,000 hours in some cases — more than the industry norm — which appeals to customers in tight financing environments.

Exports and Global Mandate

Exports, currently 500 units a year, are targeted to grow to 1,500–2,000 by financial year 2029. Tata Hitachi will develop and assemble models in India for the Middle East, Africa, and Southeast Asia — markets where Chinese brands are also expanding rapidly, and where cost-efficient yet high-quality products can create a distinct niche.

Hitachi Construction Machinery (HCM) has also entrusted its Indian arm with global product development responsibility. A new Global Technical Development Centre in Dharwad will hire 200 engineers in the next few years to design products for international markets — a significant signal of India’s strategic role in HCM’s supply chain.

Electrification Bet

While alternative fuels are being explored globally, Tata Hitachi is betting big on electric solutions. A locally developed battery-powered mini excavator is undergoing trials, with launch targeted in 12-24 months. Globally, HCM is also working on battery-operated dump trucks, with commercial rollout in 2027.

The electric CE segment is still at a nascent stage in India, largely constrained by cost acceptance and charging infrastructure, but export markets in Europe and Japan are already creating demand for zero-emission equipment.

“India will eventually see these machines, but our development work here will feed global markets first,” Singh says.

Sustained Investment to Build Niches

Tata Hitachi has been consistently investing Rs 100–150 crore annually, a commitment Singh says will continue in order to strengthen the company’s product niches and market reach. Recent spends include a new ED paint shop at Dharwad, integrating warehousing into the plant, and ongoing upgrades to manufacturing and service capabilities.

Policy and Industry Outlook

The proposed Construction Equipment, Material and Manufacturing Act aims to phase out older, more polluting machines and enforce stricter emissions norms. Singh expects this to boost both domestic replacement demand and export competitiveness.

With the CE industry expected to benefit from continued public capital expenditure, the next decade could see India rise as both a major consumer and exporter of heavy equipment.

The Road Ahead

For Singh, Tata Hitachi’s transformation is not complete. “This is a 24x7, service-driven business. Staying ahead means constant innovation, deeper customer engagement, and competing globally from India,” he says.

From a turnaround story to a growth play rooted in mining, exports, electrification, and sustained investment, Tata Hitachi’s evolving game-plan reflects both a sharper strategic focus and the resilience to navigate one of the most demanding construction equipment markets in the world.

"India Offers Not Only The Best Cost, But Also Great Brains": Marelli Electronic Systems President

Mayank Dhingra — Mon, 11 Aug 2025 16:36:53

As the shift towards software-defined vehicles (SDVs) gains momentum, technology suppliers are gearing to tap into the robust demand potential offered by the Indian market, which has emerged as the third-largest passenger vehicle market in the world. The country is also witnessing an accelerated adoption of modern technologies such as high-end infotainment screens, digital cockpits, and ADAS solutions. In this interview, Ravi Tallapragada, President, Electronic Systems, Marelli, reveals the auto component maker’s future readiness with its advanced range of vehicle electronics as well as zone control units or ZCUs that aim to revolutionise the vehicle E/E architecture of the future.

How do you see the SDV transition currently underway in the automotive industry? How is Marelli innovating in this domain?

The shift towards Software-Defined Vehicles (SDVs) is transforming the automotive industry paradigm from hardware-based systems to dynamic software platforms capable of new features and continuous updates. In this scenario, automotive architectures are evolving from distributed systems to zonal approaches. In zonal architecture, zone control units manage cross-domain functionalities, significantly reducing weight, cost, and complexity.

Consequently, vehicle makers are adopting different solutions, each with individual levels of investment and speed. As part of Marelli’s flexible business model focused on co-creation with our customers at their pace, we listen, adapt, solve and deliver - with a commitment to grow with them as their needs evolve.

At Auto Shanghai 2025, we unveiled innovative technologies and solutions for the software-defined age that follow this approach For example, we showcased the ‘ProZone’ platform, which is part of our next-generation zone control unit portfolio and consolidates autonomous electronic control units (ECUs) into centralised architecture, reducing overall cost and weight. They enable a truly software-defined system that can be upgraded over time.

How does Marelli plan to leverage its cross-domain expertise to deliver a cohesive SDV experience?

Marelli's cross-domain expertise allows us to deliver comprehensive SDV solutions that integrate lighting, interior electronics, powertrain and even more. In particular, the ProZone platform combines innovation and affordability, being able to manage body, lighting, power distribution, diagnostics, powertrain, thermal management, driving dynamics, and chassis.

By consolidating these elements into a unified zonal architecture, we enhance vehicle intelligence and personalisation, offering features that can be tailored to individual preferences. Moreover, we have a ready-to-offer catalogue of 300 cross-domains proven applications. These have been decoupled to provide vehicle makers with the opportunity to integrate them, taking advantage of Marelli's experience.

How does the company align its SDV roadmap with the electrification and digital transformation strategies of its key customers in India?

We are in close contact with several prominent vehicle makers in the Indian market to understand their vision as well as their unique requirements for the software-defined age, depending on where they are in their journey from domain-based architecture to software-defined vehicles.

We regularly share with them global market trends and our internal platform development activities to ensure close alignment. Based on the discussions with our customers and data from S&P Global (formerly IHS Market), we anticipate the first adoption of zonal architectures by Indian vehicle manufacturers starting in 2028, with mass adoption by 2030.

What is Marelli’s go-to-market strategy for SDV solutions in a cost-sensitive market like India?

Vehicle manufacturers in India are at different stages with respect to the launch of zonal architectures. Marelli sees that the coexistence of standard and legacy electronic control units (ECUs) with the advancement to zones is the best way to approach the market. Since many carmakers are eager to experiment while not yet fully adapting to a 100 percent zonal architecture, we at Marelli are a transition partner, accompanying OEM customers on their journey.

In addition, it has been crucial to empower our regional teams to take the lead on region-specific technologies and processes. At the same time, clearly defining global standards and balancing them with the necessary regional flexibility is essential. We have two R&D centers (Gurugram and Bengaluru) in India with over 1,000 engineers working on the latest technologies.

India offers not only the best cost, but also great brains. Our focus on cost and platforms gives us an advantage in the areas of technology, affordability and speed. We also leverage our partners such as LTTS, Tata Elxsi for scalability and for know-how in some emerging technologies.

How is the company placed in terms of local manufacturing of advanced electronic components in India?

Today we have several manufacturing sites in India that can produce advanced electronics, including electronic control units (ECUs) and displays. These existing capabilities can support customers adopting new E/E architecture products as well. We are also exploring the addition of more localised display manufacturing capabilities in India.

How does Marelli view the impact of US tariffs on the future of India's automotive components sector?

Regarding the subject of tariffs, we have a team in Marelli constantly monitoring the situation, which remains very fluid and unclear, particularly concerning automotive technology and related themes. At this time, we cannot provide much detail, apart from saying that we are keeping a close watch on developments hour by hour.

What role do ZCUs play in the evolution towards SDVs?

Zone control units (ZCUs) are crucial in advancing towards software-defined vehicles. This transformation reduces the number of electronic control units in a vehicle from 100 to less than 20, on average. Through our broad domain expertise, we can cover 80 percent of a vehicle’s software functionalities.

We have introduced an architecture combined with microservices for enabling and disabling hardware and software functions. This architecture is scalable to all vehicle platforms. In addition, Marelli already offers about 300 zone applications decoupled from legacy systems that can be easily integrated with third-party products. This dramatically reduces the time to market.

How is Marelli reimagining the in-cabin experience through software-defined capabilities with its cockpit ZCUs?

Marelli's zone control units go beyond just the cockpit domain. They are at the heart of redefining in-cabin experiences and allowing seamless integration and control of functionalities such as infotainment, connectivity, climate and comfort systems. Our zonal architecture enables customisation as well as personalisation and significantly enhances the driving experience.

From adjusting seating and climate preferences to selecting entertainment options, the zonal architecture ensures in-cabin features can be updated over the air, continuously improving and adapting to user preferences to provide a more comfortable experience.

What role is India playing in the innovation and R&D of new electronics and SDV solutions for Marelli globally?

Our technology and development centers in Gurugram and Bengaluru belong to our global hubs for the development of electronic components and software for the software-defined age. In India we take advantage of the availability of skilled engineers in our R&D centres and the ecosystem in Bengaluru, as well as our partners to implement our solutions.

What investments have taken place within the Electronics System division to support Marelli’s transformation into a mobility tech company?

When it comes to the allocation of investment funds and resources, we do what probably all well-run companies do - we look at the potential of new technology and make the decisions accordingly. Having said that, the software and hardware solutions enabling the SDV architecture are high on our radar.

We also use minimal viable products, sharing new technologies early with OEM customers. Together, we cocreate and enhance them for launch, allowing us to use our innovation budget more efficiently.

What is the company’s growth outlook when it comes to revenue from SDV platforms in India?

We will continue investing in next-generation architecture. In 2026, we’ll launch two zone control unit projects, making Marelli a top global supplier. By 2030, we estimate over 20% revenue growth in India from SDV platforms, especially for cockpit, display, and body electronics.

"India Offers Not Only The Best Cost, But Also Great Brains": Marelli Electronic Systems President

Mayank Dhingra — Mon, 11 Aug 2025 16:36:53

How do you see the SDV transition currently underway in the automotive industry? How is Marelli innovating in this domain?

How does Marelli plan to leverage its cross-domain expertise to deliver a cohesive SDV experience?

How does the company align its SDV roadmap with the electrification and digital transformation strategies of its key customers in India?

What is Marelli’s go-to-market strategy for SDV solutions in a cost-sensitive market like India?

How is the company placed in terms of local manufacturing of advanced electronic components in India?

How does Marelli view the impact of US tariffs on the future of India's automotive components sector?

What role do ZCUs play in the evolution towards SDVs?

How is Marelli reimagining the in-cabin experience through software-defined capabilities with its cockpit ZCUs?

What role is India playing in the innovation and R&D of new electronics and SDV solutions for Marelli globally?

What investments have taken place within the Electronics System division to support Marelli’s transformation into a mobility tech company?

We also use minimal viable products, sharing new technologies early with OEM customers. Together, we cocreate and enhance them for launch, allowing us to use our innovation budget more efficiently.

What is the company’s growth outlook when it comes to revenue from SDV platforms in India?

India: A Bastion Of Stability for Schaeffler

Ketan Thakkar — Thu, 03 Jul 2025 17:44:54

In a world roiled by geopolitical tensions and supply chain upheavals, Schaeffler AG, a German titan in motion technology, is doubling down on India as a linchpin of its global ambitions. With an investment commitment of €500 million over the next five years, Schaeffler sees India not merely as a market but as a strategic hub for innovation, localisation, and resilience in an increasingly bipolar global economy.

At a time when global trade is under strain from tariffs, protectionism, and supply chain disruptions, Schaeffler’s CEO, Klaus Rosenfeld, is looking towards India as a dependable ally. “In this geopolitical environment with all the tensions that we have, with all the stress in supply chains, and with questions such as where you are and who your friends are, you need to be careful,” he says.

“Our relationship with India has proven to be strong. India has shown over the last years, also in these difficult situations, that it is a very reliable partner,” Rosenfeld said, emphasizing Schaeffler’s role as a “good local corporate citizen” in the country. India’s allure for Schaeffler is multifaceted. The company, which employs over 3,600 people across five plants and generates over €1 billion in revenue locally, has been a fixture in the country for 62 years.

Its latest venture greenfield plant inaugurated this month—marks a new chapter, with an initial €35 million investment and plans for further expansion. Rosenfeld confirmed a robust investment strategy: “Our plans are to invest about €100 million plus every year, and that over time will also increase the revenue base of this company.”

When pressed on the timeline, he clarified, “So €500 million on an average for the next five years.” This commitment underscores Schaeffler’s confidence in India’s doubledigit growth potential, driven by a burgeoning talent pool, government-led infrastructure and digitalisation initiatives, and a stable business environment. The geopolitical backdrop amplifies India’s strategic importance. Rosenfeld described a shift to a “multipolar world” where the notion of unfettered free trade is increasingly untenable.

“The old idea of free trade is obviously challenged. It started with these surprising announcements that no one really could believe. It has relaxed a little bit. We’re going into a more world where now negotiations will happen,” he said, referring to US President Donald Trump’s decision to impose steep import duties on goods from across the world, and the ongoing negotiations around those.

He expressed cautious optimism that trade talks could yield a more balanced global market. Yet, he recognized the unlikelihood of a full return to open markets, “If all of this would lead to a more focus on why free trade and free flow of goods is important, that would be good. I doubt that this is the case.”

For Schaeffler, India serves as a hedge against these uncertainties. The country’s role in the “China Plus One” strategy i.e. diversifying supply chains beyond China—is pivotal. Rosenfeld reflected on how Europe and German manufacturers once viewed China as a mere “workbench,” a perspective that has been upended by China’s rapid technological and competitive ascent.

“For a long time Europe and also German manufacturers thought about China as a workbench and that has completely changed,” he said. In contrast, India offers a stable alternative, bolstered by its democratic governance and market potential. “I think here in balancing risk, managing supply chain risk, India can play a very important role,” Rosenfeld asserted, adding, “We are super proud that what we have here and my trip again has motivated me to do more and not less.” Schaeffler’s India strategy is not just about mitigating risks but seizing opportunities.

The company’s annual strategic dialogue, held before the summer break, is a forum where regions pitch their growth and investment plans. India, led by Harsha Kadam, CEO and Managing Director, Schaeffler India, has emerged as a standout. “Harsha again has put together a challenging plan. He knows how to compete. The sky’s the limit,” Rosenfeld said, hinting at ambitious targets.

“It’s definitely two-digit growth per annum. And that’s possible. We’ve seen this over the years.” Yet, he tempered this ambition with a distinctly German ethos: “And let me also say, and again, it’s a little bit German, we like the saying, diligence before speed. Don’t try to run before you can walk.” Implementation, he stressed, requires “strong leadership and trust,” qualities he believes India’s operations embody.

Schaeffler’s focus on localization—currently at 76% and set to rise—further cements India’s role. “Localization means nothing else than investing in capacity and financial capital and also human capital,” Rosenfeld explained. This includes producing components for wind energy—previously imported—and expanding into rail and two-wheelers, both critical to India's mobilitydriven growth.

The company’s three R&D centers and 1,600 engineers in India are tasked with developing local solutions with global technology, aligning with India’s push for self-reliance under initiatives like Atmanirbhar Bharat. India’s economic trajectory also aligns with Schaeffler’s shift toward becoming a “motion technology company,” moving beyond its automotive roots.

The €3.5 billion acquisition of Vitesco Technologies has bolstered its capabilities in e-mobility and power electronics, positioning it to serve diverse sectors from automotive to renewables. “People think we are an automotive supplier. And I have to say that is only half of the equation,” Rosenfeld said, emphasising that Schaeffler’s products—bearings, actuators, and more—are about “guiding motion, transmitting motion, generating motion.”

This ethos, encapsulated in the company’s claim “we pioneer motion,” resonates in India, where its investments in hybrid powertrains and railway bearings support national priorities like electrification and sustainability. Rosenfeld also sees India as a counterweight to the cyclical nature of the global automotive market, where Schaeffler’s repair and maintenance division thrives during downturns.

“In bad times, if people don’t buy cars, they repair cars,” he noted, highlighting the strategic value of its vehicle lifetime solutions. With India’s automotive market projected to grow from 4 million to 8 million vehicles, Schaeffler is well-positioned to capitalize, even as global volumes stagnate around 90 million.

The CEO’s visit to India, including a board session in Bengaluru on leveraging artificial intelligence, underscores the country’s role in Schaeffler’s innovation agenda. Yet, Rosenfeld remains pragmatic, viewing India not just as a growth story but as a testament to resilience.

“A strong, reliable partner, India will become bigger and bigger, especially with the FTA conversation with the UK and EU,” he said, advocating for the UK-India trade arrangement as a model for broader agreements. As Schaeffler navigates a world of tariffs and competition, India’s blend of stability, talent, and opportunity makes it a cornerstone of its future vision.

'No Question of Us Being Late' - Suzuki India on e-2Wheeler Market

Angitha Suresh — Sun, 01 Jun 2025 14:14:27

India’s electric two-wheeler market is entering a new phase. While subsidies and start-up buzz mainly drove early adoption, the recent shift in market leadership—from disruptors to legacy OEMs—is telling. With legacy automakers reclaiming dominance, Suzuki Motorcycle India sees this transitional moment as the perfect entry point.

According to Devashish Handa, Former Executive VP-sales and marketing who took charge as the Executive Officer- Business & Human Resource Development in April, the segment is beginning to mature. Suzuki’s entry with the Access EV is not late but well-timed.

“Scooter alone is seeing a penetration of between 15% and 16%. What is noteworthy is that even after the FAME regime ended and subsidies were halved, adoption has continued. It's not growing, it's not falling. That proves the demand is stabilising and becoming sustainable,” Handa told Autocar Professional on the sidelines of Bharat mobility show. e-Access, Suzuki’s first major electric model, is entering a market transitioning from incentive driven purchases to genuine consumer interest. “People are now buying EVs out of interest, not just because of subsidies,” Handa emphasized.

Handa highlighted a significant trend over the past year: Traditional automotive brands have started reclaiming dominance in EV sales. “If you see the trend over a year, who's leading the EV growth has shrunk. More legacy brands have started leading the EV growth. This entire transformation has happened gradually…and it's very clear now.”

Suzuki views this shift as indicative of evolving consumer preferences. “The customer is maturing. As the more trustworthy, legacy brands enter the market with more robust offerings, buyers are upgrading,” he explained.

The Replacement Cycle Starts

Another critical market dynamic highlighted by Handa is the initiation of the replacement cycle among early EV adopters, who now seek significantly improved products. “The first product replacement cycle is due. And the early adopters now want to upgrade into a significantly superior product,” he said.

Suzuki’s strategy centers around delivering quality, reliability, and long-term value rather than merely competing on price. “Now, it’s not about price. Now, I believe it is the product that is being chosen,” Handa noted. Addressing perceptions that Suzuki is late to enter the EV segment, Handa emphasized the company's strategic intent. With demand becoming organic and sustainable, Suzuki is confident in the timing of its entry. “This is natural demand, not curated. And that gives us confidence that the time is right,” he stated.

Family Scooter is just the start. The Access scooter has been strongly accepted by family buyers, and hence, E-Access is Suzuki's first alternative to cater to its large consumer base. Still, the company does believe that there are different categories of buyers in the market, and those will be catered to at a later date.

Autocar Professional learns Suzuki Motorcycle is actively exploring various electric two-wheeler options, with multiple models on the radar for introduction by the decade's end. The Japanese two-wheeler maker is planning to bring in at least 4-5 EVs by the end of the decade, and it is exploring potential offerings that include an electric variant of the popular performance scooter, electric motorcycles, and innovative models like the EV Cross aimed at the gig economy segment.

Handa declined to share the specifics but confirmed that multiple models are being explored. “We’re studying multiple ideas, but the rollout will depend entirely on how the market develops,” Handa said.

Suzuki’s approach aligns closely with its global parent company's strategy, emphasizing technological flexibility. Referencing Suzuki Motor Corporation President, Toshiro Suzuki’s comments, Handa stated, “Toshirosan also mentioned the multi-pathway approach in his explanation. It is a rapidly evolving landscape. Which technology will work and to what extent—that’s how it stands now. We are watching this space very closely. It may get tweaked a little.”

Strategic Urban Rollout

Though Suzuki has officially unveiled the e-Access, final strategic details, particularly volume and penetration targets, are still under review. “We’ve unveiled it, but there is still some time before we close on things like exact volume numbers and penetration targets,” said Handa.

Suzuki will employ a phased market introduction, prioritizing India’s top 30 urban markets due to existing demand and infrastructure availability. “EV penetration in scooters may be around 16%, but it’s heavily skewed towards the urban market. The bigger the city, the higher the penetration rate,” he added.

Production plans align closely with this phased rollout strategy. “As production gears up, the focus will be on establishing presence in those cities first, especially where charging infrastructure can be supported. After that, we’ll expand across the country,” Handa clarified. Suzuki anticipates penetration to reach about 25% by the decade's end.

E-Access: Suzuki’s EV Leap

The Access EV unveiled at the Bharat Mobility Show is key to Suzuki Motorcycle’s global EV expansion, and India is a key manufacturing and export base. While primarily targeting India, the upcoming Suzuki e-Access scooter carries global aspirations. Given India’s robust demand, Suzuki intends first to gauge local market response before expanding internationally.

“India comes first,” Handa confirmed, acknowledging slower adoption rates in European and Japanese markets. “We’ll observe how Indian consumers respond to the e-Access and how the ownership experience shapes up before expanding globally.” Suzuki describes the e-Access as a ‘Made in India, for the world’ product, underscoring its ambition to contribute to domestic and global electrification trends actively.

Addressing Production Constraints

Suzuki Motorcycle reported its highest-ever annual sales of 12.56 lakh units for FY2024- 25, recording an 11% increase year-on-year. The Indian arm of Japan’s Suzuki Motor Corporation saw domestic sales rise by 14% to reach 10.45 lakh units compared to the previous financial year.

The company continues to experience robust demand across its product lineup, notably scooters. Despite operating at peak production levels, Suzuki faces a supply shortfall of 15–20%. “We are falling short of retail demand every month by 15–20%,” Handa explained.

To resolve this, Suzuki is establishing a new manufacturing plant in Kharkhoda - Haryana, designed to add an initial 7 lakh units annually and with the potential for further expansion. Located next to Suzuki’s existing automobile facility, this plant will leverage an established vendor ecosystem. Suzuki recently refreshed its flagship Access scooter and confirmed plans to introduce two new internal combustion engine (ICE) models annually.

Exports and Global Strategy

Exports significantly contribute to Suzuki Motorcycle India’s success, constituting approximately 20% of its total volume this year, or around two lakh units. "We’re among the few Indian manufacturers exporting to developed countries, which sets us apart," Handa highlighted. Suzuki’s planned Kharkhoda facility will further cement India’s role as its global small-displacement motorcycle hub.

“Our strategy is clear: expand production capacity first, then enhance our product lineup to match global demand,” Handa said. Suzuki aims to significantly double its volumes from FY23 by 2030 under its internal “3.0 strategy”. “We prefer to share targets only when we're fully confident. Right now, we're optimistic about the journey ahead,” Handa concluded.

'No Question of Us Being Late' - Suzuki India on e-2Wheeler Market

Angitha Suresh — Sun, 01 Jun 2025 14:14:27

The Replacement Cycle Starts

Strategic Urban Rollout

E-Access: Suzuki’s EV Leap

Addressing Production Constraints

Exports and Global Strategy

'India Can Become a Major Pillar for Us' - Marquardt Group

Darshan Nakhwa — Sun, 06 Apr 2025 13:28:26

India, the world’s third largest automotive market, is witnessing action across vehicle categories, and German mechatronics specialist Marquardt Group is keen to make the most of this opportunity. Outside the passenger vehicle segment–which contributes the most to the group's India sales–it has spotted opportunities in the two- and three-wheeler, truck, and construction equipment categories, says Chief Executive Officer Björn Twiehaus.

The company is one of the world’s prominent manufacturers of switches, passive keyless entry systems and battery management systems. According to him, the group expects its India business to grow faster than those of all other regions, and in March, it opened a new production plant in Talegaon near Pune to ensure they have enough capacity to cater to demand.

By 2030, it expects its annual turnover from the India business to grow 10 times, from the current 40 million euro turnover. Here are the edited excerpts of the conversation with Twiehaus and Marquardt India’s General Manager, Vishal Narvekar. The two shared insights on opportunities in India, sustainable mobility solutions, their product portfolio, and geopolitical uncertainty.

How much does the India market contribute to your business at a group level? Where do you see it heading in terms of growth by 2030?

Twiehaus: India has the potential to become a major pillar of our group business in the future. At the moment, our turnover from this market is 40 million euros. It’s small compared to the 1.4 billion euro turnover on a group level. But the Indian market is growing and we are prepared to capitalise on it. With the opening of our new production facility in Talegaon, now we have enough capacity to cater to demand for our parts in future.

Outside the passenger vehicle segment, we also see opportunities in the two and three-wheelers, trucks, and construction equipment categories in the country. There is huge potential in these segments as well as in nonautomotive segments. So we are optimistic about our prospects. We expect our India business to grow faster than all other regions. We are targeting a turnover of 400 million euro per year with good profitability by 2030.

What makes you confident in your ability to deliver such strong growth over the next five years?

Twiehaus: There are two reasons why we are confident of delivering such sharp growth. First, confidence in the people that they can handle end-to-end. Our team here is motivated, capable and well prepared. Plus they have the prior experience of handling a smaller facility in Mumbai. And the second reason is that we have tie ups with wellknown automotive companies from India.

Currently, we provide parts to Mahindra & Mahindra, Maruti Suzuki India, Tata Motors, Hyundai Motor, Kia, TVS Motor Co, Daimler, and Stellantis. So we have established business relationships. It's not a greenfield activity that we have to start opening the doors. Now it's much easier to penetrate further product lines with these customers because they are convinced with the quality and the delivery status.

Among vehicle segments, which is the biggest contributor to your sales in India? How much of your business comes from internal combustion engine powered vehicles and electric vehicles?

Narvekar: The passenger vehicle segment is the biggest contributor to sales in India. In this segment, 10-15% of our business comes from EVs and the rest from the ICE segment. Among electric vehicle manufactures, we provide parts to Tata Motors and Mahindra. Going forward, with the launch of more EVs, and a shift in sales trend, we expect the EV contribution to grow.

Twiehaus: The EV segment will support the company’s future growth, but we are not dependent on it. Regardless of powertrain and fuel, whether hydrogen, electric or ICE, all vehicles will require switches, human interface solutions, and entry and authorisation solutions. We provide technologies and solutions which support all kinds of powertrains.

In search of sustainable mobility solutions, automakers are exploring different fuels and powertrains. What is your take on this?

Twiehaus: For passenger cars, and two and three-wheelers, I think electrification is clearly the way forward. Globally, there is continuous growth in EV sales. If you look at China, it's already done, and I think the same is coming for India and other countries. In the truck segment, there has been some electrification, but it's not efficient in terms of the driving range they offer.

Therefore, we may see more hydrogen and synthetic gasoline technologies in the truck segment. And for us, this means we have to observe, discuss with customers and find solutions for their problems. We have to be agile. In these diverse markets, we have to find the best modular approaches to cope with the complexity.

What are the lessons you learnt from the operation of your plant in Mumbai? How have these lessons been incorporated in the new facility?

Twiehaus: The one thing we learned is that we will be much stronger in the region if we have both research and development and production units in close proximity. We can support our customers with end-to-end solutions. Most of our customers are either building or have plants in Pune. Other than developing for the region, now we are also developing for global projects from India. So, they are taking over software development and validation. And we can extend that business as well.

What was the thinking behind selecting Talegaon in Pune to set up a new production base?

Narvekar: There were multiple reasons to select Talegaon as the base. The first reason is that we wanted to be closer to our research and development centre, which is in Pune. When you look at product development and production, they are two processes which are interconnected, and both teams need to work together. The second reason was to come closer to the suppliers and customers both. As you know, Chakan is the base for suppliers as well as major original equipment manufacturers. The third objective was to attract the right talent. Mumbai is not a hub of auto component makers, so sometimes it becomes difficult to get people with the right skills.

With the opening of the Talegaon facility, by how much has your manufacturing capacity gone up in India?

Narvekar: For this year, it would be just 20% higher than the Mumbai plant capacity. But there is scope to up the capacity by 10 times from the current levels to cater to future demand. There is scope for brownfield expansion on this plot as and when the need arises. If you look at the current shop floor, we have not even occupied half of it yet.

What are your export plans?

Narvekar: We are already exporting parts from our Mumbai plant, and we will continue to do that from the new facility as well. We have been able to meet the global quality standard. Currently, we supply parts to South Korea and Europe. Nearly 12% of our sales come from exports. With the new facility, there is scope to increase exports further. But it will also depend on the customer contracts. Our primary focus is to cater to domestic demand.

Twiehaus: I would say we are open to supporting our global needs from India, but the primary reason why we have invested so much here is to have a plant for this region.

The geopolitical tensions have increased in recent times, with a threat of tariff war looming. Do you expect any challenges on the supply front in the near future? And how do you plan to cope with this?

Twiehaus: There are challenges, but I wish everybody cools down a little bit and we work together again globally. Because in the end, that is the best for all of us. If the situation worsens then it would impact everyone directly or indirectly. At Marquardt, we cannot steer the situation, so we have to observe, adjust and consider. But in the end, we are entrepreneurs. We have to search for solutions, and this is what we are looking for, especially in India.

Narvekar: In terms of parts supply, close to 80% of our mechanical components are procured locally and 20% are imported due to specific critical reasons. When it comes to e-components, we still need to import them. So, that's how the distribution is.

Have you seen any interest from Indian suppliers for providing parts for technology shown in Demo Car 2.0?

Twiehaus: In the end, we need alternatives from India for local and global technological requirements. Decoupling is something our customers are looking for. Many Indian suppliers visited the Demo Car 2.0 booth and started a discussion with me about how they can support us and how we can work together. So yes, we are looking for partnerships also in India. For me, it is important to have the Indian speed and innovation spirit. But at the same time, we are looking for discipline and quality which is up to German standards. There are partners here who deliver on time, with the right quality and quantity.

Are you looking for tie ups with charge point operators to provide your robotic charging solutions for EVs?

Twiehaus: There is no concrete plan as of now. We want to support companies who are looking for technical solutions in this space, but cars will also need to be equipped with communication technology. It's more than just a robot charging a vehicle. If you want to have automated charging, there needs to be communication between the car and robot.

So that when a car comes to the charging station the robot can charge, and when it is finished the car should move away so that the next car can come. So there is more to it if you really think about automated charging than just to enter the plug via a robot. It's an ecosystem which we want to support, and are looking for partners who would like to work with us on those technologies.

Luxury Car Market to Slow in 2025: Mercedes-Benz Sees Flattish Numbers

Prerna Lidhoo — Thu, 20 Mar 2025 08:54:30

The Indian luxury car market, which has enjoyed robust growth since the COVID-19 pandemic, outpacing the mainstream segment, is now seeing a slowdown as falling stock markets and geopolitical instability dampen consumer sentiment.

The high-end car market may be experiencing its slowest growth from January to March 2025. If the weakness persists, it may even experience its first quarterly decline in the same period, following nearly 16 consecutive quarters.

According to Santosh Iyer, Managing Director of Mercedes-Benz India, the Indian luxury car market may experience a period of flat growth or a slight dip in the coming quarters due to weak consumer sentiment. However, he remains confident about the sector’s long-term outlook, citing strong economic fundamentals and continued brand desirability.

"We began the year by clearly stating that this year, we would experience growth as such. That’s a broad expectation, but right now, luxury is also a sentiment-driven demand,” Iyer said.

“Currently, sentiments are muted in capital markets and some other sectors due to various geopolitical uncertainties as well.”

The Indian luxury car market is estimated to have grown by 6-7%, with retail sales of over 50,000 units, whereas the mainstream market grew by 4% in 2024. The market grew at nearly double the pace of the mainstream market between 2021 and 2023, helping the industry reach a new peak last calendar year.

Even this year, the market started on a high, with Vahan retail sales in January growing 12%. The momentum slowed in February to 5%, and the stress continues in the current month.

While the market conditions may remain sluggish in the short term, Iyer expects demand to recover in the second half.

“We need to wait for those sentiments to return because, structurally, we don’t see anything wrong from either the economic or consumption perspective. The products are great, and the brand remains very desirable, so the growth should come at the right time,” he explained.

He acknowledged that the industry may see flat or slightly negative growth for a quarter or two before demand picks up again.

“Maybe for one or two quarters, you may see a flat or even a slight decrease, and then it should return to a better growth rate.” On a full-year basis, we still believe it should be either flat or slightly better than last year; therefore, we need to wait for it,” he added.

Tesla's impact on the Luxury Market
Regarding the potential entry of Tesla, Iyer stated that the introduction of new players into the Indian car market will grow the space. “New players always help to grow the market, so I think it’s always welcome to be there,” he said. However, he pointed out that Mercedes-Benz operates primarily in the premium and luxury segments.

"Our stake in the entry-luxury segment is only 10%. Ninety percent of cars sold in India fall in the top-end luxury, ultra-luxury, or core luxury segment,” he noted.

Maharashtra’s EV Tax on Demand
Addressing the recent 6% tax on electric vehicles (EVs) imposed by the Maharashtra Government, Iyer noted that such policy shifts could temporarily impact demand.

“One of the reasons EVs were given exemptions by different states was to promote decarbonization,” he said. “State governments are trying to address issues like livable cities by increasing electric mobility, which is great. However, they also face financial constraints in continuing this waiver.

Mercedes-Benz has observed a demand impact in states where taxes on EVs were introduced. "However, over the last three years, our penetration into EVs has increased from 2% to 3% to 6% last year. More and more consumers are accepting it, and I believe this is also due to the increased availability of a greater variety of products. So, we should wait and watch how this develops.”

Despite short-term headwinds, Mercedes-Benz India remains optimistic about the luxury car market’s long-term potential, anticipating a rebound as consumer confidence stabilizes.

Forex Impact on Pricing
Mercedes-Benz India has implemented price increases this year, with hikes in January and March for the E-Class, which was initially launched at an introductory price.

The company is now closely monitoring foreign exchange movements, as the euro-to-rupee exchange rate has seen a sharp increase, which could lead to further price revisions.

“We implemented a price increase in January, and we also raised the price of the E-Class in March, as we had initially introduced it at a promotional rate," said Iyer.

"The recent depreciation of the rupee against the euro has been a cause for concern. When we look at the exchange rate, the euro has already reached a 95 level, whereas we have always priced our cars at 90. That’s a significant increase, and if this trend continues, it may lead to another price hike from April onwards," Iyer explained.

Market Volatility and Pricing Strategy
The company generally follows an annual price review policy, with occasional adjustments made in the second half of the year as needed. However, sharp currency fluctuations may necessitate quicker responses.

"We generally implement an annual price increase, and sometimes, if required, we may also introduce another hike in the second half of the year. But if the exchange rate fluctuates significantly, we need to react," Iyer said.

To put the impact into perspective, he added, "A five-rupee increase in the euro-to-rupee exchange rate translates to a rise of almost 5-8% in costs, which is quite significant."

Despite these challenges, Iyer emphasized that such fluctuations are a normal part of business dynamics in a global market, and the company will continue to evaluate the situation closely.

‘We Must Have More Women Leaders in the Auto Sector:’ Anjali Rattan

Mayank Dhingra — Tue, 11 Mar 2025 19:34:06

The multi-faceted RattanIndia Enterprises, which operates in the areas of e-commerce and drones, and since June 2022, has taken complete ownership of leading e-motorcycle brand – Revolt Motors – is led by the dynamic Anjali Rattan – who is the chairperson of this New Delhi-headquartered company. Rattan, who is a first-generation entrepreneur, believes that women representation, particularly in roles beyond manufacturing, is sub-par in the automotive industry, and it is important to increase their participation across all tiers of an organisation, especially at the top level. Anjali Rattan, Chairperson, RattanIndia Enterprises shares her viewpoint in this interview.

What is your take on diversity in the automotive industry?

When it comes to diversity, while it is there in the automotive sector, it is mainly in manufacturing and at the shopfloor. There are very few women in areas such as R&D, and sales, among other white-collared roles. Therefore, we need to have women reaching the top level, and once that happens, it will automatically percolate down.

Companies in the automotive industry must aim for equal representation from either gender in the workforce. Having said that, just like how the government is doing excellent programmes in drones, they must introduce initiatives to skill women in technology, R&D, and sales in the automotive industry as well.

What is your vision for diversity at Revolt Motors?

I am a first-generation entrepreneur and it was not an easy journey to be where I am today. Hence, I want to inspire women to unleash their potential and scale heights in their careers. I believe women are naturally wired to be multi-taskers, and hence, my aim is to have more women across domains, across various levels in the organisation. At Revolt Motors, it is our endeavour to hire more women, and bring them into the workforce, be it at the entry- , mid-, or top-level roles.

Are women also emerging as customers of Revolt Motors?

Almost 10% of our customer base comprises women who hail from not just metros, but from Tier-2 and Tier-3 towns as well. Most of these women initially had scooters, and have now converted to using an electric motorcycle. When I speak with them, I get to learn that they like the design of the bike, as well as the convenience offered by the gearless nature of an electric motorcycle.

Moreover, the need to not visit the fuel station to refuel, as well as the elimination of cumbersome servicing needs in an electric two-wheeler, are other important attributes alluring women riders to our products.

What innovative return-to-work measures can be adopted to give women a second shot at their careers?

While we usually hire people for skills, one must hire for the right attitude - irrespective of the gender. Skills can be imparted with training. If a woman who has recently had kids is willing to work for some part of the day, she must be given a chance to revive her career.

At Revolt Motors, we are working on devising such womencentric roles that are flexible, and allow women to showcase their potential and excel in them. I will reiterate that women are naturally wired to multitask, and we are trying to tap into that instinct to bring more women to our company.

Are you passionate about automobiles?

I am an EV lover, and it is something that I bought seven years ago. While I am really passionate about Revolt, I am not an avid biker myself. I do ride our products, but that is primarily for feedback and product reviews to the team. Having said that, I am not scared anymore to ride an electric motorcycle, which is suitable even for women riders. Rather than being a biker, I am more passionate about launching new bikes, and getting to know my customers is something that piques my interest.

‘SDVs open an avenue for women to be more inclusive in the auto industry’: DTICI’s Angelin Mary GP

Autocar India — Sat, 08 Mar 2025 08:05:11

Angelin Mary GP – Vice-President, Vehicle Software, Daimler Truck Innovation Centre India (DTICI) – revisits her journey as an engineer to reach her current leadership role, where today she drives cutting-edge innovation powering future vehicle software platforms, alongside leading various DEI initiatives at the company to create a steady pipeline of future women leaders. A seasoned professional with over 26 years of experience, she has served as Head, Vehicle Software, DTICI since April 2022.

Can you give us an overview of your journey towards reaching this position today?
I started my career with the DRDO (Defense Research and Development Organization) where I was there for around five years before deciding to move to the private sector. And my choice was automotive because of my prior experience in vehicle research at DRDO. I made the switch to the automotive industry with Delphi Automotive (now Aptiv) where I was in the software and electronics division.

I started as a senior software engineer and for a very long time, grew into various positions within the software domain. I was leading the system validation team of Asia Pacific, when I thought that I need to also experience other domains, some of which, like cloud and mobile, were a little ahead of their time. So that is where I joined Honeywell in its building automation solutions division.

That gave me a different flavour and speed altogether. With a cloud and mobile app, I was experiencing agile development methodologies, and after three years, the call from automotive happened again, and due to my passion, I made the switch to join Daimler Truck. I have been with the Daimler Truck Innovation Centre India (DTICI) since April 2022.

What was the level of diversity during higher education and in early years of your career?
I have done my BE in Computer Science and then an MS in Software Systems. While there was a 30-50% diversity ratio in courses like Electrical, Electronics and Communication, and Computer Science Engineering, streams like Mechanical Engineering were mostly dominated by boys. Even at DRDO, male dominance was evident, and I was one among the few women in an engineering role.

As I grew up the career ladder, from the leadership point of view, I was the only woman leader who could get into the senior leadership position. In fact, I was the youngest leader. But I have developed this attitude or habit of never being conscious of my gender. I play a role and deliver what is expected out of me. I think that has helped me to not be submissive and remain confident.

Are you seeing a change? What are some of the DEI initiatives at DTICI?
Several women have started to get into the leadership ladder, especially in the senior leadership roles. Often, women drop off at the middle-management stage due to various well-known personal reasons, but the situation is now changing. Companies are now encouraging women to grow in their careers, and at DTICI, for example, we have several DEI (diversity, equity, and inclusion) initiatives, wherein I am also leading one of the working groups.

We have a dedicated working group called the ‘DT Wings’ and this group enables access to various leadership roles for women. We focus on mentoring and coaching women to be confident to chart out their career roadmaps. We encourage them to network with other colleagues and leaders. Quite often, women are hesitant and waiting for an opportunity or waiting for an external push to reveal their talent. Hence, DT Wings offers the right forum where women participate in sessions that also teach them on how to market themselves. We coach them to promote themselves by executing various programmes. We also fast track and identify potential women who could be our future leaders.

Moreover, we focus on reintegrating women when they come back from their maternity. We are also forming a small committee to revisit the policies and offer realistically possible flexibility to women to encourage them to continue and grow in the ladder. Hence, we have a conscious focus at each level to create a steady pipeline of women leaders.

Diversity brings a multi-perspective approach in decision making, and therefore, it is not just important to have women in leadership roles, but across the board as it drives innovation. Furthermore, the industry is undergoing a lot of changes, not just at the policy front, but also if we look at the software content inside vehicles which is increasing leaps and bounds.

As we move towards software-defined vehicles or SDVs, it opens an avenue for women to be more inclusive in white-collared roles, alongside the shopfloor. The overall Industry is changing, and the change is particularly visible in the last two decades.

What message would you like to convey to budding women in the automotive workforce?
Women must not feel shy from projecting their work and promoting themselves. This is what I would tell my lady peers in the industry. Are they afraid of criticism? Do they need approval from someone? They need to ask these questions and overcome their preconceived notions. Women need not be conscious of where they are coming from and be afraid about if that would impact on how they would be treated.

We need to be confident by virtue of our core values. We must not wait for the right time, right age, right experience or support from the ecosystem. Women must just start today.

‘SDVs open an avenue for women to be more inclusive in the auto industry’: DTICI’s Angelin Mary GP

Autocar India — Sat, 08 Mar 2025 08:05:11

We need to be confident by virtue of our core values. We must not wait for the right time, right age, right experience or support from the ecosystem. Women must just start today.

‘We must make roles gender agnostic': Shradha Suri Marwah

Autocar India — Sat, 08 Mar 2025 07:32:54

Shradha Suri Marwah, President of the Automotive Component Manufacturers Association of India (ACMA) and Chairperson of leading Tier-1 major Subros believes competency, not gender, should be the parameter for any job in the industry.

What initiatives is ACMA taking to increase diversity within its member companies?
There are several initiatives that ACMA is taking right now. We are trying to look at diversity as whole, and going beyond gender. We have recently launched a pillar for DEI – diversity, equity, and inclusion – with a focus on creating awareness for our members on why diversity is important and how it leads to enhancement in innovation and productivity. It is a proven fact that diversity drives innovation and efficiency.

As ACMA, we are working with the entire value chain on how we can improve diversity in the automotive industry. It is a pity that diversity in the automotive sector currently averages 8%. But our endeavour is to double it to 15-16% and bring more women in the automotive workforce in the next five years.

ACMA has partnered the Bill and Melinda Gates Foundation and the Good Business Labs – wherein we are analysing individual ACMA member companies to understand where they stand in terms of diversity. The programme is jointly undertaking measures to increase women participation in the mid- and senior management roles, and not just at the entry level. While there is a lot of work that needs to be done, we are going to get there, and I am a testament to that.

We believe that if we can create success stories within ACMA members, we will be able to cascade that across the membership, the bulk of which is MSMEs, and we want to drive this agenda to them. We want to go beyond just checking a box when it comes to diversity in the workforce.

Are we going to see more women leaders in the automotive industry?
There is always a start and I do believe that there is a lot more women coming into leadership as entrepreneurs and even as the second generation within a family business. So, there is a shift in the mindset and on the professional space as well. The challenge, however, is that while we have a large pool of women at the entry level, they, somewhere whilst reaching the mid-level, drop off for some well-known reasons – marriage, children, etc. What I am keenly trying to work around is how to re-employ women after they have dropped off.

Once we have such return-to-work initiatives in place, we will see women climb up the ladder because the issue is not about lack of skills or abilities, it is about their presence in the workforce, in the first place. One must also allow the social fabric to take over and provide them with a support system. While some women have that advantage, many do not. But it should not be a deterrent at all.

We are also seeing a lot more diversity on the shopfloor rather than in other white-collared jobs but that is changing. While it is not as quick as it should be, people are talking about it. One of the biggest issues that we are facing is not from the women’s side, but, from the male perspective. It is the men who find it hard to embrace women as colleagues, and therefore, a lot more awareness is required on the male front. Today, women need to try too hard to stay where they are, or grow in an organisation, and this is particularly a bigger problem in the mid-management and white-collared roles.

Hence, we must make roles gender agnostic, and the most capable person – be it a male or female – must be the righteous owner of a specific job. Having said that, I do think that women do need flexibility because they tend to be the primary caregivers and hence, they need to balance, especially if they have children. Therefore, some sort of flexibility must be provided and we must focus on the deliverables rather than making them realise the fact that they have more benefits compared to men. It is not possible for a country like ours to ignore, what constitutes almost 48-50% of its population.

What is your vision for diversity at Subros?
Subros is a very interesting example, and we are already at 14-15% diversity ratio, which is where we desire to take the entire sector in the next five years, by when our aim is to take Subros to 30% diversity levels. Furthermore, our Board, which comprises 12 members, is 45% women. Therefore, Subros is quite an anomaly and we have some very powerful women on the Board. While I try to educate and drive this narrative in my own organisation, it is the same thing I would like to drive for ACMA as well. The entire membership needs to a

‘We must make roles gender agnostic': Shradha Suri Marwah

Autocar India — Sat, 08 Mar 2025 07:32:54

‘Automotive design more provocative than evocative today’: Maurizio Corbi

Autocar India — Mon, 03 Mar 2025 09:45:03

With edgy lines and sharp styling cues getting harmonised in modern vehicles, Italian car designer Maurizio Corbi believes automotive design is darting towards becoming more provocative than evocative in today’s digital age where social media trends are significantly influencing car designs.

Moreover, just like social-media trends, most of these car designs tend to become short lived, compared to the timeless art forms that used to be created almost two decades ago, and would represent an artist’s expressions.

Corbi, who started his design career at Pininfarina in 1989, has contributed to several iconic designs from Italian sports car manufacturer Ferrari . . . like the F355, 456, 550 Maranello and California, among others. On a recent visit to India as a guest lecturer at the School of Design, at UPES Dehradun, he pointed out that the definition of ‘beauty’ with respect to automotive design has changed significantly in the present scenario.

Social media and its impact on automotive design
In an exclusive interaction with Autocar Professional, Corbi said: “The globalisation trend is creating an identity crisis in automotive design. People are getting influenced by what they see on social media, and that is what is creating this crisis. Everyone is creating standardised designs which are hard to differentiate.”

“While the quality of the vehicle is going up, it is coming at the cost of the identity of a new model. In today’s world, the shelf life of a model is getting very short, and people are not able to appreciate a new design for long. This is killing design in a way. It is more like a provocation, rather than designing a beautiful object,” he added.

According to Corbi, while OEMs continue to spend heavily on the exterior styling of a vehicle, the mega trends of autonomous driving and shared mobility are also calling for an extra level of attention to the in-cabin experience and interior layouts that would offer a wholesome experience to vehicle occupants. “The car interior is becoming a lot more important and more sophisticated. Compared to the past, there is a greater emphasis on the cabin and user experience,” he pointed out.

With car becoming the third living space and an extension of an individual’s digital lifestyle, OEMs are focusing on making the interior more comfortable, and are finding means of keeping them engaged by virtue of infotainment, comfort, and convenience features such as massaging seats, hi-fidelity audio, and mood lighting, among others. “With autonomous vehicles, it is about making the interior extremely comfortable, and engaging,” he said.

Foray of AI, digital tools
With most OEMs adopting a platform approach that call for multiple body styles and exterior designs on a single architecture, product lifecycles are getting shorter and thus, demand faster ideation in terms of new designs or re-skinning. As a result, digital tools and the foray of artificial intelligence (AI) are having a huge impact on the automotive design process.

From paper to tablets, to now AI, one can create high-quality renderings and 3D models in a matter of a few minutes. While studios are also doing away with the process of clay modelling with the advancements in simulation, according to Corbi, “AI is the new frontier, and at the end of it, it is very important to have a prototype, and life-size car models. However immersive a digital render could be, the touch and feel of a real-life model is completely different.”

The edgier styling is also part of the advancements in manufacturing technology, which enable the formation of complex shapes, thus making it possible to bring radical shapes to life. “Design and manufacturability go hand in hand, and the latter has a strong influence on design. Today, several advanced tools allow the manufacturability of a design and that is leading to radical shapes come out. There is a lot of reskinning that keeps happening on a common platform – therefore, the process is also a lot faster compared to the past,” Corbi said.

He attributed the recent success of homegrown OEMs like Tata Motors and Mahindra & Mahindra to the advancements in manufacturing technology that have enabled the production of some of the best-selling models of these carmakers. Cars like the Tata Nexon, and Mahindra XUV700, which find a wide appeal, see design playing a key role in enamouring the car buyers who have reciprocated with strong volumes.

Showing his optimism about the Indian automotive industry, Corbi said, “The automotive industry in India is growing rapidly and design students have strong opportunities in the future. It is all about the passion – one must have a strong passion if they want to make a successful career in automotive design,” he signed off.

‘Automotive design more provocative than evocative today’: Maurizio Corbi

Autocar India — Mon, 03 Mar 2025 09:45:03

‘India Auto Inc is opening up to new tech like giga stampings’: Antonio Lopez, CEO – Asia Division, Gestamp

Autocar India — Thu, 13 Feb 2025 08:39:18

Where does India stand in Gestamp’s automotive business in Asia? What are the company’s expectations from the Indian market?
We have been established in India since 2007 and, throughout all these years, we have been growing our business in the country steadily. The Indian market has been growing at a rapid pace in the recent years, and there are projections of a strong market growth in the future as well. Therefore, our strategy is to continue making investments in India based on the plans of our customers.

India is a very important market for Gestamp in terms of hardware development, and we will continue undertaking those activities like we have done in the past. We have been making investments in introducing new technologies in India to not just align with the market growth, but to also cater to the stringent requirements, particularly around quality, safety, and lightweighting that are now increasingly in demand.

Gestamp showcased its latest portfolio at the Bharat Mobility Global Expo in New Delhi last month.

What is Gestamp’s future product roadmap for the Indian market?
Gestamp has a strong expertise in manufacturing as well as design, wherein we work with our customers to help them achieve their targets. In the changing era towards electrification and sustainable mobility, we are seeing additional requirements for lightweighting and higher safety, and we are fully prepared to support our customers.

In India, we have been doing so through our four manufacturing sites – two each in Pune and Chennai -- as well as our R&D centre located in Pune, through which we are introducing our latest technologies in the country. As the market develops further, our local competencies will help us introduce newer products which are cost-effective – a key demand from the Indian customers. Therefore, we are bringing new technologies which are highly-advanced as well as cost-effective.

In this regard, we have been working on several body-in-white (BIW) products related to giga stampings – extremely large stamping parts produced with lower cost of manufacturing – that also help simplify assembly at our customers’ end by reducing the number of individual parts. Furthermore, we are leveraging newer materials, and new concepts that help us meet their requirements. We have multi-material offerings depending on the customer needs, and as efficiency is a key requirement for both these vehicle propulsion systems, we have products which are suitable for both ICE and EVs.

Gestamp's EV subframe with electric motor integration.

Which are the new products focussed on vehicle electrification?
Particularly for EVs, we are introducing battery cases and battery boxes to support our customers in India. Gestamp is leading the way when it comes to the development and introduction of these technologies in the country. We are working with all the prominent passenger vehicle (PV) OEMs in the country on different projects, and supporting them through our plants in Chennai and Pune.

Lately, we have been very active in this product category, and are realising new supply awards based on battery boxes developed by the giga-stamping process. We have some of them in the pipeline for a couple of our customers.

The Indian automotive industry is becoming more open to adopt new technologies, given the recent changes in regulations. At the same time, the local regulations, with respect to safety, are becoming more stringent, and we can support on that front as well. Our partners in India are seeing the value these advanced solutions are offering.

Gestamp's R&D teams are offering various solutions such as the new electric battery box and chassis components integrating the new electric motors.

While most of our vehicle chassis solutions are multipurpose and agnostic to ICE or EV, the battery box is something that is more EV-specific. At the same time, we can offer different solutions, depending on the powertrain – ICE, hybrid, or EV – by focusing on certain differentiated requirements for each of them with our specific products.

The EV market in India is only in its beginning stages, and the predominant portion of the demand is still driven by combustion-engine-powered vehicles. Having said that, the introduction of our new combustion-engine products in India will eventually transition to EV applications in the future as the EV market grows. As a key supplier, we are supporting the electrification trend in India by following our customers’ plans.

What level of growth do you expect from the Indian market in the future?
Since India is one of our key markets, and with our well-established footprint in the country, we will grow in tandem with the market growth. Today, India is within the Top-5 vehicle manufacturers in the world and ,therefore, the relevance of the market has increased significantly. Like what we have done in other markets, we will continue expanding in the Indian market, and continue supporting our customers.

Today, our installed capacity allows us to grow rapidly, compared to the past. We have made some investments related to EVs – with the battery boxes – and are geared with the advanced technologies and quality to supply to the market.

Is it challenging to locally source raw materials such as high-strength steel for advanced chassis solutions?
The availability of raw materials for advanced chassis solutions is starting to now improve in India, and as the demand grows further, even material suppliers will augment their localisation initiatives. Our suppliers are understanding that India is a growing market and they are paying attention to that.

Therefore, we expect that the availability of localised raw materials will improve further in the coming years. Having said that, there are certain limitations, particularly around finding the right sources for aluminium, but in Gestamp, we always find a solution, depending upon the need, cost, and material availability – to offer the best solution to our customers.

Globally, Gestamp has tied up with ArcelorMittal to develop low-carbon steel. What are the plans to introduce it in the Indian market?
Gestamp is increasingly focused on driving sustainability and in several markets, we have been selected as an industry mover that is introducing greener technologies. When it comes to sustainability, the entire supply chain must come together, and not just steel, other materials in a vehicle need to be more sustainable as well.

There must be a critical mass for us to introduce sustainable materials such as green steel, and our agreement with ArcelorMittal is applicable globally. So, whenever there is enough demand, we can introduce these materials in India. Moreover, we have several other partnerships with other material suppliers, and we are quite proactive when it comes to sustainability. On similar lines, we are also implementing solar energy sources in our facilities in India, and regardless of our customers’ roadmap, we are also voluntarily trying to lead on the sustainability front. Through Gescrap, which is involved in circularity, we aim to tap into high-value scrap recycling. Therefore, we believe that there must be a joint effort among all stakeholders to ensure tangible outcomes with respect to sustainability.

Where do you foresee the Indian market in Gestamp’s global rankings in the mid-term future?
Within Asia, India is a key market for Gestamp that is increasingly becoming more relevant. And we are expanding our management teams in the country to fulfil the requirements of our customers. More importantly, we are also trying to enhance our localisation to be closer to our customers.

While we do not have a specific target for India, today, in terms of the market share, India’s contribution to Gestamp globally is not that high as we are much more well established in other mature markets. But we have been steadily growing in India, and in the past two years, we have been making inroads in the country by working with more customers who are now relying on our technology and expertise to make a mark in the EV era by building safer and lighter cars.

Our biggest market is Europe; we have a significant presence in the US, and we are growing our presence in China and other emerging markets such as Mexico as well. We see growth in these pockets globally and we are locally supplying to OEMs to tap into the growth potential offered by these markets. We are quite optimistic that India will continue to grow in the future. We see a strong opportunity to support the OEMs in the country and make a difference in the market with our products.

Does Gestamp aim to diversify into segments beyond passenger vehicles?
While we do have some business in the commercial vehicle (CV) segment – particularly LCVs – we do not see them being significantly different from PVs when it comes to the requirements for lightweighting, and safety. As CV OEMs introduce electrification in their products, there is going to be a higher requirement for lightweighting, and thus, our solutions can find application there.

Furthermore, if we look outside the automotive space, there are applications such as energy storage systems that also require similar product characteristics like the EV battery boxes in terms of their design and durability. This could be a potential area of diversification for Gestamp in the future.

What is your demand outlook for the global automotive industry in 2025? What would be the key challenges ahead for the industry?
2025 is going to be a year when the global automobile demand will not be as dynamic as it used to be in the past. The Indian market, however, is different as it promises higher GDP growth, which would translate into good growth in its automobile market as well. Generally, 2025 is going to be challenging not only in terms of the varying demand from different geographies, but also due to the geo-political challenges around the world.

Furthermore, there could be challenges due to increasing competition at the customer and supplier ends. But as Gestamp, we always embrace competition, which strengthens our business by pushing us to reinvent ourselves by offering newer products, and continue improving them. This benefits the end consumer. We would also continue to work towards achieving sustainability goals and realising the net-zero carbon emissions goal.

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Interview | Glyn Jones, Country Manager & President, Gestamp India

'Keen on Making Cars in India, Evaluating Partnership Option' - BYD's Chauhan

Prerna Lidhoo — Thu, 06 Feb 2025 18:22:37

BYD Auto, the world’s largest electric vehicle manufacturer from China, continues to explore the possibility of setting up a manufacturing facility in India, and is also evaluating options to partner with domestic companies for the same, said Rajeev Chauhan, who heads the Indian electric PV business of the Chinese automaker.

The Chinese company, the world’s largest maker of EVs, was frustrated in its last attempt to set up a manufacturing base in India after its investment proposal, reportedly worth $1 billion, failed to assuage security concerns of the Indian government. The lack of local manufacturing has severely constrained the company’s presence in the Indian market, where it enjoys only a marginal presence through imported models.

However, Chauhan indicated the company was still interested in setting up manufacturing in India, including a tie-up with an Indian OEM. “We are keen and we are constantly evaluating. A lot of factors have to merge in, to make that decision click. At this point of time, we are evaluating the options. As soon as we spot that opportunity, we will definitely take it,” he told Autocar Professional in an interaction.

The comments came in the backdrop of speculations that the Chinese new energy vehicle specialist has been in talks with Indian conglomerates Reliance Group and Adani Group to manufacture locally. Chauhan did not share any timeline on when the company expects to be able to start production in the country. Instead, he said that it will use 2025 to expand the company’s presence in tier-2 markets and spread awareness about BYD products.

In 2023, the automaker’s plan to set up an EV and battery manufacturing facility in India at an investment of $1 billion alongwith its Hyderabad-based partner Megha Engineering and Infrastructures was not approved by the government.

The spotlight on Chinese companies operating in India increased after border clashes between the two countries in 2020. The Indian government has since tightened foreign direct investment rules, with any investment proposal from countries sharing land border with India, requiring its prior approval.

In 2024, a glimmer of hope emerged for Chinese automakers–with ambition to expand presence in India–after the joint venture between JSW Group and China's largest car maker Shanghai Automotive Industry Corporation's British Brand MG Motor India received government clearance. The relations between India and China have improved over last year. This has come in the backdrop of growing economic uncertainties in both countries, international trade uncertainties, and India’s potential as a consumer. This development is expected to help BYD with manufacturing ambition in India.

Rising Ambition

In 2024, BYD India sold a total of 2,831 cars in India, registering growth of 40% over the 2,012 units sold in 2023, according to Vahan data. In comparison, the electric passenger vehicle industry sold a total of 99,290 units, registering a growth of 20% on the year. Tata Motors, JSW MG Motor and Mahindra & Mahindra contributed over 90% of industry sales. Chauhan aims to reach 10,000 units annually within the next two years.

Currently, BYD operates a small assembly base in Tamil Nadu but relies heavily on completely built imports due to homologation challenges. In 2023, the company faced accusation of not meeting the conditions required for lower tax rates on imported car parts, leading the Department of Revenue Intelligence to seek $9 million in penalties.

According to government regulations, a company is permitted to import a maximum of 2,500 units of a model annually. The cap is lifted if the model obtains a homologation certificate from the government-run Automotive Research Association of India, which certifies that the vehicle meets safety and regulatory standards. BYD India has received a homologation certificate for Atto 3 model in India, and it is in the process of getting a homologation certificate for eMax7. However, the company is yet to apply for this certificate for Seal.

Meanwhile, the competition in the electric car space in India is expected to reach a crescendo, with both the government and automakers doubling down on their strategies to drive adoption. For 2025, while most original equipment manufacturers have chosen the path of product offensive and heavy marketing spends to entice potential customers, BYD India plans to sharpen focus on tier-2 markets.

According to Chauhan, BYD India has already covered tier-1 markets through its dealerships, and in 2025 it aims to target tier-2 markets to drive growth.

The company plans to expand its dealership network in the country from 27 touchpoints to 40 by the end of January. “Our strategy is to familiarise people with BYD products, and technology in tier-2 markets. To build a base for the next set of customers,” he said.

On demand from the tier-1 markets, Chauhan said the company has so far seen strong demand from Hyderabad, Bangaluru, Delhi, and Mumbai. Most of the 2,831 cars sold by the company in 2024 are expected to have come from tier-1 markets.

“These are bigger markets for all other manufacturers as well. But if you do a relative comparison, then BYD is doing a little better in terms of market share. Electric car adoption in Hyderabad and in Bangaluru is relatively higher for us,” he said.

According to Chauhan, the government is focused on development of charging infrastructure, and has announced right policies for the same. However, India is a big country and the development of infrastructure might take time. Meanwhile, BYD plans to allay customers' range anxiety by offering a driving range of approximately 500 km on single charge for its EVs, which, according to Chauhan, has worked in the company’s favour.

Responding to a query on whether anti-China sentiment has had any impact on its business in India, Chauhan said the company has not faced any negative sentiments. “The customers in India are pragmatic. They know what is good and bad when it comes to a product,” he said.

According to Chauhan, BYD considers India an extremely important market in its scheme of things, but hasn’t set any target for the world’s third largest automobile market. The automaker believes that there is a favourable environment for EVs in the country, and that will help drive growth in future. “The outlook looks bright, because a lot of players are coming in. The EV market in India will certainly grow at a very fast pace, driven by favourable conditions. There is tailwind on electric cars…If we are able to go into, let's say, double digits, that could be a good number,” he said.

BYD entered India three years ago with–Atto 3, a mid-size sport utility vehicle, and Seal, a luxury sedan. Now, it sees opportunities in premium multi-purpose vehicle and performance SUV segments. And to fill the gap in the market, the company introduced eMAX 7 in 2024, and launched Sealion 7 at the Bharat Mobility Global Expo 2025. The company will reveal the price of Sealion 7 on February 17, and will commence its deliveries from March 7.

According to Chauhan, BYD India remains focused on premium EVs, and plans to take a calculated approach to the mass market segment. The company’s current product portfolio is priced between Rs 25-53 lakh ex-showroom. “In the long-term, we want to introduce as many models as possible. But in the short term, we want to spot new segments and introduce more models in the premium segment,” he said.

In India, BYD models compete with those like XEV 9e and BE 6 from Mahindra, Maruti Suzuki India’s eVITARA, Hyundai Motor’s Creta Electric and IONIQ 5, and Tata Motors upcoming Harrier EV and AvinyaX. On introducing a mass market EV to go against domestic players, Chauhan said, “It's a very lucrative and competitive market for sure, and there are very high returns as well. So definitely on the lookout for that. But it's an assessment phase. We are concentrating on our space

Managing KTM debt a challenge, but confident of revival package: Rakesh Sharma

Darshan Nakhwa — Tue, 28 Jan 2025 20:31:58

KTM AG, a leading player in the adventure and sports motorcycle segment, is navigating a challenging phase marked by financial restructuring and leadership changes. With Stefan Pierer stepping down as the Chief Executive Officer and the company undergoing a court-supervised revival process, questions about its future have arisen. The Austrian bike maker may need 1-2 billion euros to come out of this tight spot. Bajaj Auto, a significant shareholder in KTM, plays a crucial role in supporting this transition.

Autocar Professional spoke with Rakesh Sharma, ED of Bajaj Auto, on the way ahead for Europe’s largest motorcycle maker.

What is the current state of affairs at KTM Global? We understand that Mr. Pierer has stepped down, there have been funding challenges, and Bajaj Auto is a significant shareholder. Could you help us understand how difficult the situation is and what impact this has on local operations?

Well, as you know, the process is self-administered and supervised by the court, and it will continue until February 25th. During this time, KTM's management must work with the four appointed officers to submit a revival notice.

On January 24th, the court conducted a review to check whether the process was being meaningfully pursued. It was satisfied that management was making all efforts to assemble a package to present to the court before February 25th. This was an important milestone, and the court approved continuing the process.
Under the leadership of Gottfried Neumeister, the new CEO, and Stephan Zöckling, the new Chairman of the supervisory board, the management team is actively engaging with various investors, including us, to finalise this package. The process will likely run until the February deadline.

How has this impacted Bajaj Auto’s operations?

There has been no impact on our domestic business. KTM products sold in India are manufactured locally in Chakan and distributed through our network of 440 dealers. In fact, KTM has had an exceptional quarter, its best ever, with the refreshed Duke 200 and Duke 250—launched in October—performing exceptionally well. Both models continue to see strong demand.

We have felt an impact on exports. Previously, we manufactured lower CC products for KTM, which KTM distributed to their international markets. This export volume has significantly decreased. Last year, it was about 6,500 units per month. In Q3, it dropped to around 3,500 monthly units, constituting approximately 6% of our exports last year. In Q3 of this year, it fell to 3%. Exports are on hold and will only resume once the situation becomes clearer after February 25th.

What are the funding requirements, and is Bajaj Auto willing to contribute?

The funding requirements are variable and depend on several factors, such as the extent of debt recalibration undertaken by creditors, the operating cash runway required for the year, and other considerations. Estimates currently range from €1 billion to €2 billion. This is a significant sum, but the exact requirement will only be determined once the final package is put together. The company will be declared insolvent if the package isn’t finalised by February 25th.

Bajaj Auto is very supportive of KTM's management in this process, which requires engagement with existing stakeholders, potential investors, creditors, and bankers. It is a complex, broad-based effort, but we are actively involved and monitoring the situation closely.

How confident are you that KTM can overcome this challenge and return to its glory days?

KTM is a powerful brand with a strong niche position in the adventure and sports motorcycle categories. Its products, brand equity, and franchise remain intact; the challenge lies solely in managing the debt. The management is working hard to address these issues, and we are confident in their efforts to put together a robust revival package.

While the funding requirement is substantial and serious, the brand’s core strengths—its products, market presence, and reputation—are solid. Once the debt management and working capital challenges are resolved, we believe KTM can emerge stronger and reclaim its leadership position in the marketing KTM debt a challenge, but hopeful of revival package.