As the automotive industry in India is undergoing a significant transformation, with the shift towards electrification, alternative fuels, and advanced mobility solutions, Schaeffler is positioning itself as a key player in this dynamic landscape.
In a discussion, Micah Shepard, President of Vehicle Lifetime Solutions (VLS) Asia Pacific, and Sharad Bhatia, President of VLS India, shared insights into the company’s strategies, challenges, and plans for the Indian market.
Electrification & Diversification
Schaeffler has embraced the electrification trend, leveraging its acquisition of Vitesco to combine mechanical expertise with advanced electronics. This has allowed the company to become EV-ready with new projects in India and Asia-Pacific moving into production stages. Shepard highlighted the importance of a balanced approach, mentioning “We see opportunity across all segments—ICE vehicles, hybrids, and BEVs—and we are prepared to support each.”
In India, EV sales are growing steadily, and Schaeffler is actively supporting the market with its flagship solutions, such as the 3-in-1 e-Axle designed for a prominent carmaker. However, Bhatia noted that hybrids and ICE vehicles, including flex-fuel and alternative fuel models, will continue to dominate for the next 8–10 years.
Adapting Manufacturing To Market Shifts
The transition to electrification and alternative fuels has increased complexity in manufacturing. Shepard acknowledged that shifting production lines to accommodate new powertrains involves significant challenges, including strict OEM approval processes. To address these issues, Schaeffler is investing heavily in flexible production facilities to cater to diverse market needs.
The company is also exploring hydrogen fuel cell technology through its R&D initiatives in Europe, aiming to position itself as a mobility partner for a wide range of powertrain options.
Strategic Investments In R&D & Localisation
R&D takes prime precedence for a sound strategy, with significant investments directed toward future technologies. Shepard pointed out that Schaeffler consistently ranks among the top German companies in patent filings, reflecting its commitment to innovation.
Localisation is another critical focus for Schaeffler in India. The company is increasing its local production capabilities to reduce import dependence, making its products more cost-competitive. Shepard emphasised that localisation also enables faster response times to market demands, benefiting both Indian consumers and export markets.
Supporting The Aftermarket Ecosystem
The aftermarket sector is a key growth area for Schaeffler. Through platforms like Repxpert, the company is addressing the skill gap in independent garages by providing training, technical support, and specialised tools for modern automotive components.
Bhatia highlighted Schaeffler’s CSR initiatives aimed at up-skilling workshops to handle EV-related servicing requirements. He explained, “We are technically upgrading workshops to prepare them for the short-term needs of EV servicing. This ensures that garages can maintain and install our products effectively, benefiting end customers.”
The recent acquisition of the Koovers platform has further strengthened Schaeffler's presence in the B2B segment, enabling direct outreach to garages and gathering valuable market data to refine its product strategies.
India’s Automotive Challenges & Opportunities
Both speakers expressed optimism about India’s automotive market, describing it as being on the cusp of exponential growth. Shepard, who has worked across Asia-Pacific, compared India’s current momentum to China’s automotive boom, stating, “India is unique and is charting its own path, but the pace of growth here is comparable to China’s during its peak.”
However, challenges remain, including cost pressures, the need for technical upgrades in garages, and the complexities of catering to diverse powertrain options. Schaeffler is addressing these hurdles by fostering close relationships with OEMs and adapting its strategies to market dynamics.
Looking Ahead Towards A Multi-Fuel Future
The Indian automotive market is expected to evolve into a strong mix of ICE, hybrid, and EV powertrains in the coming years, with increasing contributions from alternative fuels like ethanol and hydrogen. Shepard concluded, “India is well-positioned for the future, with its skilled labour force, strong supply base, and growing focus on exports. Schaeffler is committed to being a partner in this journey, supporting all segments of the market with cutting-edge solutions.”
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