Growing Investment in India’s Automotive Market
Inteva Products, an American automotive supplier, is Investmenting big money on India with a new $3.3 million investment. This Tier 1 supplier, with industry leaders Tata Motors and Mahindra & Mahindra as clients, said it would expand its Chakan facility in Pune to three times its existing capacity. It also supplies parts to Tesla, one of the examples of the company’s global reach and the strategic importance of its Indian operations.
Why India Is Key to Inteva’s Growth Strategy
“India seems to present the best growth opportunities over the coming years,” said Gerard Roose, president and chief executive of Inteva Products, with sales of $1.7 billion, in specialism in automotive systems and components. This positive sentiment finds support in a spate of recent foreign investments as multinationals in the automotive industry are keen on churning opportunities from India’s growing automotive segment. Inteva joins a growing queue of investment as it becomes one of the latest foreign investors in India.
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Major Expansion Plans: More Space, Higher Output
Inteva’s latest investment in the plant in India would increase the production space it has to 70%, totaling 85,000 square feet, with another 26,000 square feet set aside for office space. The move would also allow the company to host new lines of productions, meaning that it would be able to produce more critical automotive parts such as window regulators, latches, and motor assemblies.
The expansion will allow us to offer our customers even more localized high-quality automotive components, says Sanjay Kataria, Vice President of Inteva Products for the rest of Asia and Managing Director of India operations. One of the others is the India business, which accounts for almost 5% of Inteva’s global revenue, and is set to grow at an incredible CAGR of 37% from FY20 to FY26, which should see it increase from $3 million in FY20 to an expected $49 million this year with a target to add another $10 million next year.
Leading Clients and Production Capacity
Key customers for Inteva in India are Tata Motors, Mahindra & Mahindra, and PSA, of which these form about 68% of Inteva’s revenue in India. The plant has a yearly capacity to produce about 20 million units, including window regulators, motor assemblies, side and lift gate latches amongst others. So far, it is producing around 9 million units.
Supplying Domestic and International Markets
About 80% of Inteva’s Indian production caters to domestic players. The remaining production serves export markets, including high-profile clients like Tesla, Stellantis, and Daimler Truck. This blend of domestic and international clients underscores the strategic value of Inteva’s Indian operations in meeting demand from leading automotive brands globally.
Leveraging India’s Engineering Talent
India’s engineering talent is central to Inteva’s global operations. The company operates a 200-member technical center in Bengaluru, the sole center among its 10 global locations focused on Computer-Aided Engineering (CAE) projects. The Bengaluru center provides virtually round-the-clock engineering and R&D support, from component-level to system-level testing, which allows Inteva to maintain a consistent development pipeline across global markets.
Future Growth: Second Plant and Technical Center in the Works
Inteva’s expansion in India doesn’t stop here. According to Marco vom Wege, VP and Chief Commercial Officer, both India and China are projected to experience robust growth rates in the automotive sector. With the India business expected to hit $125 million in the next five years, plans for a second manufacturing plant in the country are underway. A second technical center, potentially in Pune, is also under consideration to bolster its R&D capabilities.
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India’s Market Potential: A Promising Outlook
According to Roose: “While the Indian automotive sector has, until now, generally been slower-growing than expected, this time around, the market seems well-set for promising performance. Indian economic growth is robust, and consumers are demanding more vehicles, so it presents a good environment for both the automotive manufacturer and its suppliers. This new investment for Inteva marks not only an expansion but also a deepened commitment to the Indian market and strong confidence in the country’s automotive future.”.
