Schaeffler India, a leading motion technology company, has inaugurated its fifth manufacturing facility in India, located in Shoolagiri, Tamil Nadu. This facility marks a significant milestone in the company’s local expansion strategy, supporting its commitment to “Make in India” and strengthening its position in the automotive components sector.

A Strategic Investment in Powertrain & E-Mobility Growth

The newly launched manufacturing facility is part of Schaeffler’s vision to cater to the rising demand for automotive technology solutions in India, especially in the fields of powertrain systems and chassis components. It covers a land plot of 108,000 square metres, with Phase 1 comprising 16,500 sqm, set to reach full ramp-up by Q4 CY2025.

The factory will focus on producing both conventional and electrified powertrain technologies, including planetary gear systems, hybrid transmission components, and other emerging mobility innovations tailored for the Indian market.

“India is a key market for Schaeffler. The new facility is a significant step in our efforts to expand our global manufacturing footprint and further localization in the region.”
– Matthias Zink, CEO Powertrain & Chassis, Schaeffler AG

Driving Local Growth and Global Ambitions

This investment supports Schaeffler’s dual objective of increasing local manufacturing capabilities while aligning with its long-term global growth goals. The plant will significantly increase production capacity for transmission components, which are in high demand due to the rapid growth of India’s automotive sector.

It is not just a production hub but also a center for innovation and product expansion, enabling the company to better meet both current and future customer needs. This includes adapting to the transition toward e-mobility, a key focus area for the automotive industry in India and globally.

“The inauguration at Shoolagiri exemplifies our commitment to expanding our capacities and competencies in India… as we transition towards E-mobility.”
– Harsha Kadam, MD and CEO, Schaeffler India

Investing in India’s Future with ₹1,700 Crore Commitment

Over the past three years (2022–2024), Schaeffler India has invested ₹1,700 crore, surpassing its initial commitment of ₹1,500 crore. This funding has been directed toward expanding product lines for powertrain and e-mobility solutions, and producing large and medium-sized bearings for industrial applications.

These investments reflect the company’s strong belief in India's market potential and the country’s role in its global supply chain. The new plant is an example of how Schaeffler continues to build robust local capabilities to meet both domestic and international demand.

Schaeffler’s E-commerce and Digital Expansion

Schaeffler India is not only focusing on physical infrastructure. In 2023, it expanded into the automotive digital aftermarket by acquiring KRSV Innovative Auto Solutions Pvt Ltd (Koovers), a B2B e-commerce platform. This acquisition strengthens its digital footprint and distribution network in India, further broadening its customer base and service capabilities.

This move underscores the company’s multi-pronged strategy: physical expansion through plants like Shoolagiri and digital expansion through acquisitions like Koovers.

Sustainability: A Core Strategic Priority

The new Shoolagiri plant has been designed with sustainability at its core. Schaeffler India’s approach mirrors the Schaeffler Group’s global strategy, treating sustainability as a “license to operate.”

The plant includes several green initiatives, such as:

• Natural daylight optimization

• Battery-operated material handling equipment

• Rainwater harvesting systems

• Zero liquid discharge and reuse mechanisms

• Energy-efficient machinery with eco-mode functionality

• Waste heat recovery systems

• 100% LED lighting and digitalized operations

• Ergonomic and inclusive work environments

These steps help create a world-class manufacturing hub while ensuring the plant has a minimal environmental footprint. The facility exemplifies how modern industry can balance economic growth with ecological responsibility.

Boosting Employment and Local Development

The new facility is expected to contribute to employment generation in Tamil Nadu, especially in the Hosur and Shoolagiri belt, which is already an established automotive and industrial hub. This supports the region’s economic development, enhances skill development, and encourages technology transfer.

The project also aligns with the Tamil Nadu government’s vision to be a global destination for advanced manufacturing and helps reinforce India's position as a preferred hub for automotive components.

Shaping the Future of Motion Technology in India

Schaeffler India’s continuous investments in infrastructure, technology, and people demonstrate its intent to stay at the forefront of the motion technology landscape. Its five manufacturing facilities and three R&D centres together form a powerful production and innovation ecosystem, empowering the company to drive the next phase of mobility evolution in India.

As the automotive industry undergoes a massive transformation, companies like Schaeffler are proactively shaping the future—from conventional powertrains to electrified mobility—and creating a self-reliant, future-ready supply chain in India.

“We remain committed to strengthening capabilities in India with our ever-evolving motion technology portfolio to seize emerging opportunities and retain our competitive edge.”
– Harsha Kadam, MD & CEO, Schaeffler India

In Summary, Schaeffler India’s fifth facility in Tamil Nadu is not just another manufacturing plant—it is a symbol of innovation, sustainability, and strategic growth. It reflects the company’s strong alignment with India’s industrial ambitions, its deep focus on emerging technologies, and its long-term vision to be a major contributor in the global mobility ecosystem.

The Upcoming IPOs in this week and coming weeks are 3B Films, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are N R Vandana Tex Industries, Scoda Tubes,Neptune Petrochemicals, Blue Water Logistics, Astonea Labs, Nikita Papers, Prostarm Info Systems, Aegis Vopak Terminals, Schloss Bangalore.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.