New Delhi: As Mahle gears up for a transformative future, India will play a pivotal role in its growth strategy focusing on hybridisation, electrification and alternative fuels.
With a revenue of over €12 billion of which India’s share is €450 million, the German auto parts supplier sees the region as one of its most critical markets moving forward. “India is one of our most important regions,” Arnd Franz, Chairman and CEO of Mahle, told ETAuto in a recent interview.
“In our new corporate organisation, which we set up at the beginning of the year, India is one of our major global regions. Our goal is to fully focus on the development of this market in terms of technology, manufacturing, and collaborations with government and science,” he added.
Mahle is set to increase its growth in India which it believes will be in double digits in the coming years. According to Franz, the company’s strength lies in its broad market coverage across segments, from two-wheelers and passenger cars to heavy trucks and off-highway vehicles.
He said the key to Mahle’s success lay in its technology, particularly in electrification, hybridisation, and renewable fuels for internal combustion engines. It is also well poised to lead in both electric and hybrid technologies.
“We believe that a smart combination of internal combustion engines and electrical drive, either as a parallel or serial hybrid, has a very promising future,” said Franz. The company will continue to invest in both technologies and their combination, thereby “providing an opportunity to balance affordability, range and comfort”.
Hybrid powertrains
With the future of electrification still evolving, Mahle sees hybrid powertrains as a key bridge to more sustainable mobility. Franz said hybrid vehicles could address the challenges of affordability and range while ensuring the reliability levels of internal combustion engines.
Mahle is also investing in renewable fuels such as ethanol and hydrogen to further reduce fuel consumption and make it more sustainable. “The Indian government’s strategy of allowing all technologies that contribute to defossilisation of the mobility sector is on the right track,” said Franz.
For instance, the shift from E10 to E20 fuel at the start of this year “is a significant step” in this direction. Mahle is also fully localised for most of its products and is now focusing on expanding its manufacturing capacity, especially for electric components,” he added.
This localisation drive aligns with the ‘Make in India’ initiative, which encourages local production of a wide range of products. Franz said Mahle would continue to build manufacturing capabilities in India and add more products to supplement its local offerings.
While the focus is on meeting domestic demand, there is potential for exports especially cost-effective vehicles that can be sold overseas.
Strategic restructuring
Mahle’s global restructuring is so designed in order to streamline operations and create synergies. This will bring together manufacturing and development processes for more efficient growth.
Mahle’s 2030+ strategy outlines a resilient approach that can adapt to the pace of electrification while ensuring continued success in internal combustion engine technologies.
“Our strategy is well thought out and resilient…no matter where the speed of electrification goes or how long, we will see large quantities of internal combustion engines,” he said. Mahle would continue to work towards a “sustainable mobility future and provide reliable technologies to customers”.
The German auto component maker intends to maintain its competitive edge by focusing on efficient energy consumption in electric motors, charging systems, and thermal management. “Our mission is efficiency in motion,” Franz added.
Mahle’s focus on hybrid and electric technologies, alongside sustainable fuels, is expected to shape the future of mobility in the region. As it continues to innovate in clean, energy-efficient mobility solutions, the company is poised to play a leading role in the shift towards a sustainable, fossil-free transportation sector.
