Bosch Ltd, which makes braking and fuel injection systems and electric drive units, reviews capacity and investment plans based on volume trends, chief financial officer Karin Gilges told analysts on 9 February. The company routinely checks predicted volumes, analyses capacities and adjusts investments in every demand cycle, Gilges said. Meanwhile, Uno Minda expanded capacity at alloy wheel factories in Maharashtra and Haryana and commissioned a new plant in Haryana. The company board has signed off on yet another wheel plant in Haryana, group CFO Sunil Bohra told analysts on 5 February.<\/p>\n
<\/p>\n
Shares of Uno Minda and Bosch are up 39% and 33% over the past one year, while the Nifty Auto and the benchmark Nifty are up 29% and 12% respectively.<\/p>\n
Extracting more<\/h2>\n
Harshvardhan Sharma, group head of automotive technology and innovation at Nomura Research Institute, said capacity additions currently are focused through extraction of more units from existing plants. \u201cCapacity utilization at suppliers has moved to the 75-85% range, which is typically the trigger zone for expansion,” Sharma said.<\/p>\n
\u201cHowever, instead of launching large greenfield projects, most players are adding 5-10% capacity through debottlenecking and brownfield expansion. A broad capex cycle would require sustained 3\u20134 quarter demand visibility and stronger export momentum,” he added.<\/p>\n
The need for supplier capacity expansion comes as the automakers themselves look to expand their factories. The country\u2019s top four carmakers, Maruti Suzuki<\/a>, Mahindra and Mahindra, Hyundai Motor India, and Tata Motors PV, are set to cumulatively add more than 2 million units of capacity in the next four years. Over 3.7 million cars and 17.8 million two-wheelers were sold in India till the end of January this financial year, a growth of 6% and 8% respectively, data from the Society of Indian Automobile Manufacturers showed.<\/p>\n The historic GST reform in September lowered the rate on small cars and two-wheelers up to 350cc from 28% to 18%. The reform aimed to boost mass-market demand by making entry-level vehicles significantly more affordable, while simultaneously eliminating the compensation cess to simplify the overall tax structure for the sector.<\/p>\n In the December quarter, sales of two-wheelers and cars sales touched record highs. According to Siam data, two-wheeler sales grew 17% year-on-year to 5.7 million units, while passenger vehicle sales grew 21% to 1.3 million units.<\/p>\n <\/p>\n Belrise Industries, a maker of suspension and exhaust systems, set up a Haridwar plant in the December quarter\u2014the biggest since its public listing in May 2025, after winning a large order from a leading two-wheeler maker, managing director Shrikant Badve said at a 2 February earnings call. “Our Chennai plant ramped up production in line with rising OEM volumes, where we are the single source supplier for a key 2-wheeler EV platform,” Badve said.<\/p>\n Tata AutoComp opened two new units in Gujarat on 30 January under seating and thermal systems business units. \u201cThese new facilities mark a signi\ufb01cant milestone in Tata AutoComp\u2019s strategic growth, enhancing our ability to support OEM partners and respond effectively to evolving platform requirements,” vice-chairman Arvind Goe said in a statement.<\/p>\n The capacity question came into the spotlight after two leading auto makers, Tata Motors <\/a>Passenger Vehicles Ltd and Hero MotoCorp, pointed to the need for larger capacity at their suppliers during earnings calls.<\/p>\n Shailesh Chandra, managing director and chief executive at Tata Motors PV, told analysts in a 5 February earnings call that the company is working on ramping up both internal capacities and expansion of suppliers’ capabilities. \u201cAt Tier 1 to Tier 3 supplier level, especially, let’s say, for example, castings and all, we are seeing that there is a general capacity constraint that is coming. So, we are working on enhancing the capacities and ramping up the supplies from the supplier,” Chandra said.<\/p>\n <\/p>\n A similar engagement with auto suppliers is also underway at Hero MotoCorp, with chief executive Harshavardhana Chitale telling analysts how the company feels capacities need to rise at the supplier level.<\/p>\n There is a need to increase capacity quickly as high-growth segments like EVs<\/a>, the export portfolio of bikes and scooters, and scooters in general are growing at a rapid pace, Chitale said at an earnings call on 6 February.<\/p>\n <\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":" … electric vehicle components. Large automakers<\/span> have already pointed to … Sharma, group head of automotive<\/span> technology and innovation at … country\u00e2\u0080\u0099s top four carmakers<\/span>, Maruti Suzuki, Mahindra and … the Society of Indian Automobile<\/span> Manufacturers showed. The historic …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-90208","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/90208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=90208"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/90208\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=90208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=90208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=90208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Higher demand<\/h2>\n
Vendor power<\/h2>\n