Schaeffler India Limited, a manufacturer of auto components, has inaugurated its fifth manufacturing facility in Shoolagiri, Tamil Nadu, aimed at expanding its capacity for producing powertrain and chassis components. Built within a land plot of 108,000 square metres, the facility covers 16,500 square metres, and is expected to reach full ramp-up by the fourth quarter of calendar year 2025.
The new unit will focus on manufacturing conventional and hybrid transmission components, planetary gear systems, and other technologies for the Indian automotive market. The company stated that the facility will contribute to its broader production capacity expansion strategy and support long-term global growth plans.
“The new facility is a significant step in our efforts to expand our global manufacturing footprint and further localization in the region. It supports our long-term growth vision and positions us to better cater to the rising market demands and grow with the Indian market,” said Matthias Zink, CEO Powertrain & Chassis, Schaeffler AG.
Schaeffler India has invested INR 17 billion between 2022 and 2024 to expand local capabilities, exceeding its earlier commitment of INR 15 billion. This includes new product lines for powertrain solutions, e-mobility, and bearings for industrial applications.
The company also completed the acquisition of KRSV Innovative Auto Solutions Pvt Ltd (Koovers) in 2023, enhancing its presence in the automotive aftermarket sector.
“With the expansion of our production facilities, we are well-positioned to cater not only to the present local markets but also future needs as we transition towards E-mobility,” said Harsha Kadam, Managing Director and CEO, Schaeffler India.
The Shoolagiri facility has been developed under a sustainability framework. Features include natural daylight usage, battery-operated equipment, rainwater harvesting, zero liquid discharge systems, and energy-efficient machinery. Additional elements include heat recovery systems, 100% LED lighting, and digitalized operations.
Schaeffler AG has outlined a continued focus on localisation as part of its India strategy. The company has achieved a localisation level of approximately 76% and aims to increase this further. The company has made annual investments in recent years to support this approach and plans to continue doing so to meet the growing demand and potential in the Indian market.
Schaeffler AG also plans to invest over EUR 100 million annually in India over the next five years to expand its operations. These efforts reflect Schaeffler’s commitment to enhancing its local capabilities and supply chain resilience within the region.
Schaeffler India is a subsidiary of the Schaeffler Group, which operates in over 55 countries with approximately 120,000 employees. In India, Schaeffler has four other manufacturing facilities located in Pune, Savli, Maneja, and Hosur, along with three research and development centres and seven sales offices. The company offers solutions in motion technology across multiple sectors, including electric mobility, drives, chassis systems, and industrial applications.