Schaeffler India has intensified its strategic investment in the domestic automotive sector, committing Rs 1,700 crore over the past three years to broaden its capabilities in powertrain and e-mobility technologies. The company recently inaugurated a state-of-the-art manufacturing plant in Shoolagiri, Tamil Nadu, designed to produce advanced conventional and electrified powertrain components, including planetary gear systems and hybrid transmission parts. This expansion complements Schaeffler’s existing footprint of four plants and three R&D centers in India, reinforcing its commitment to ‘Make in India’ while positioning itself to meet rising domestic and future electric vehicle market demands.
Significant Capital Infusion and Expansion
Over the 2022–2024 period, Schaeffler India surpassed its initial Rs 1,500 crore investment plan by allocating Rs 1,700 crore towards capacity enhancement. This capital deployment focuses on expanding product lines in powertrain solutions, e-mobility innovations, and industrial bearings. The company’s expanded manufacturing portfolio now includes medium and large-sized bearings, vital for various industrial applications beyond the automotive realm.
New Shoolagiri Facility: A Strategic Manufacturing Hub
The newly commissioned plant at Shoolagiri stands as a critical node in Schaeffler’s manufacturing network, which also comprises four other facilities in Pune, Vadodara (two plants), and Hosur, alongside three research and development centers. This plant is tailored to support the production and development of both traditional and electrified powertrain systems, with a special emphasis on emerging technologies such as hybrid transmission components and planetary gear systems.
This initiative is expected to significantly augment Schaeffler’s transmission component manufacturing capacity, reinforcing the firm’s ability to cater effectively to India’s growing automotive market, especially as the sector undergoes a decisive shift toward electrification.
Strengthening Presence in the Digital Automotive Aftermarket
In addition to manufacturing advances, Schaeffler India has bolstered its foothold in the digital automotive aftermarket through the acquisition of KRSV Innovative Auto Solutions Pvt Ltd (Koovers), a B2B e-commerce platform, in 2023. This move enhances the company’s reach within the automotive aftermarket segment, leveraging technology to streamline distribution and customer engagement.
Leadership Perspective and Market Outlook
Matthias Zink, CEO of Powertrain and Chassis at Schaeffler AG, underscored India’s strategic importance, stating that the new facility is integral to expanding Schaeffler’s global footprint and deepening localization efforts. He highlighted that this step aligns with the company’s long-term growth ambitions to address increasing domestic demand.
Echoing this sentiment, Harsha Kadam, Managing Director and CEO of Schaeffler India, emphasized the company’s readiness to serve both current and future market needs, particularly as the automotive industry transitions towards electric mobility. Kadam reaffirmed Schaeffler India’s dedication to the government’s ‘Make in India’ initiative and its commitment to sustainable manufacturing practices.
Conclusion
Schaeffler India’s substantial investment and recent operational enhancements mark a pivotal phase in its journey to dominate the evolving automotive landscape in India. By integrating advanced manufacturing capabilities and digital innovations, the company is positioning itself at the forefront of powertrain and e-mobility technology production. This expansion not only strengthens Schaeffler’s competitive edge domestically but also supports India’s broader ambitions of automotive self-reliance and green technology adoption.
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