German autoparts maker Schaeffler’s CEO, Klaus Rosenfeld, describes India’s role in the company’s €24-25 billion empire.
03 Jul 2025 | 865 Views | By Ketan Thakkar & Darshan Nakhwa
In a world roiled by geopolitical tensions and supply chain upheavals, Schaeffler AG, a German titan in motion technology, is doubling down on India as a linchpin of its global ambitions. With an investment commitment of €500 million over the next five years, Schaeffler sees India not merely as a ...
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In a world roiled by geopolitical tensions and supply chain upheavals, Schaeffler AG, a German titan in motion technology, is doubling down on India as a linchpin of its global ambitions. With an investment commitment of €500 million over the next five years, Schaeffler sees India not merely as a market but as a strategic hub for innovation, localisation, and resilience in an increasingly bipolar global economy.
At a time when global trade is under strain from tariffs, protectionism, and supply chain disruptions, Schaeffler’s CEO, Klaus Rosenfeld, is looking towards India as a dependable ally. “In this geopolitical environment with all the tensions that we have, with all the stress in supply chains, and with questions such as where you are and who your friends are, you need to be careful,” he says.
“Our relationship with India has proven to be strong. India has shown over the last years, also in these difficult situations, that it is a very reliable partner,” Rosenfeld said, emphasizing Schaeffler’s role as a “good local corporate citizen” in the country. India’s allure for Schaeffler is multifaceted. The company, which employs over 3,600 people across five plants and generates over €1 billion in revenue locally, has been a fixture in the country for 62 years.
Its latest venture greenfield plant inaugurated this month—marks a new chapter, with an initial €35 million investment and plans for further expansion. Rosenfeld confirmed a robust investment strategy: “Our plans are to invest about €100 million plus every year, and that over time will also increase the revenue base of this company.”
When pressed on the timeline, he clarified, “So €500 million on an average for the next five years.” This commitment underscores Schaeffler’s confidence in India’s doubledigit growth potential, driven by a burgeoning talent pool, government-led infrastructure and digitalisation initiatives, and a stable business environment. The geopolitical backdrop amplifies India’s strategic importance. Rosenfeld described a shift to a “multipolar world” where the notion of unfettered free trade is increasingly untenable.
“The old idea of free trade is obviously challenged. It started with these surprising announcements that no one really could believe. It has relaxed a little bit. We’re going into a more world where now negotiations will happen,” he said, referring to US President Donald Trump’s decision to impose steep import duties on goods from across the world, and the ongoing negotiations around those.
He expressed cautious optimism that trade talks could yield a more balanced global market. Yet, he recognized the unlikelihood of a full return to open markets, “If all of this would lead to a more focus on why free trade and free flow of goods is important, that would be good. I doubt that this is the case.”
For Schaeffler, India serves as a hedge against these uncertainties. The country’s role in the “China Plus One” strategy i.e. diversifying supply chains beyond China—is pivotal. Rosenfeld reflected on how Europe and German manufacturers once viewed China as a mere “workbench,” a perspective that has been upended by China’s rapid technological and competitive ascent.
“For a long time Europe and also German manufacturers thought about China as a workbench and that has completely changed,” he said. In contrast, India offers a stable alternative, bolstered by its democratic governance and market potential. “I think here in balancing risk, managing supply chain risk, India can play a very important role,” Rosenfeld asserted, adding, “We are super proud that what we have here and my trip again has motivated me to do more and not less.” Schaeffler’s India strategy is not just about mitigating risks but seizing opportunities.
The company’s annual strategic dialogue, held before the summer break, is a forum where regions pitch their growth and investment plans. India, led by Harsha Kadam, CEO and Managing Director, Schaeffler India, has emerged as a standout. “Harsha again has put together a challenging plan. He knows how to compete. The sky’s the limit,” Rosenfeld said, hinting at ambitious targets.
“It’s definitely two-digit growth per annum. And that’s possible. We’ve seen this over the years.” Yet, he tempered this ambition with a distinctly German ethos: “And let me also say, and again, it’s a little bit German, we like the saying, diligence before speed. Don’t try to run before you can walk.” Implementation, he stressed, requires “strong leadership and trust,” qualities he believes India’s operations embody.
Schaeffler’s focus on localization—currently at 76% and set to rise—further cements India’s role. “Localization means nothing else than investing in capacity and financial capital and also human capital,” Rosenfeld explained. This includes producing components for wind energy—previously imported—and expanding into rail and two-wheelers, both critical to India's mobilitydriven growth.
The company’s three R&D centers and 1,600 engineers in India are tasked with developing local solutions with global technology, aligning with India’s push for self-reliance under initiatives like Atmanirbhar Bharat. India’s economic trajectory also aligns with Schaeffler’s shift toward becoming a “motion technology company,” moving beyond its automotive roots.
The €3.5 billion acquisition of Vitesco Technologies has bolstered its capabilities in e-mobility and power electronics, positioning it to serve diverse sectors from automotive to renewables. “People think we are an automotive supplier. And I have to say that is only half of the equation,” Rosenfeld said, emphasising that Schaeffler’s products—bearings, actuators, and more—are about “guiding motion, transmitting motion, generating motion.”
This ethos, encapsulated in the company’s claim “we pioneer motion,” resonates in India, where its investments in hybrid powertrains and railway bearings support national priorities like electrification and sustainability. Rosenfeld also sees India as a counterweight to the cyclical nature of the global automotive market, where Schaeffler’s repair and maintenance division thrives during downturns.
“In bad times, if people don’t buy cars, they repair cars,” he noted, highlighting the strategic value of its vehicle lifetime solutions. With India’s automotive market projected to grow from 4 million to 8 million vehicles, Schaeffler is well-positioned to capitalize, even as global volumes stagnate around 90 million.
The CEO’s visit to India, including a board session in Bengaluru on leveraging artificial intelligence, underscores the country’s role in Schaeffler’s innovation agenda. Yet, Rosenfeld remains pragmatic, viewing India not just as a growth story but as a testament to resilience.
“A strong, reliable partner, India will become bigger and bigger, especially with the FTA conversation with the UK and EU,” he said, advocating for the UK-India trade arrangement as a model for broader agreements. As Schaeffler navigates a world of tariffs and competition, India’s blend of stability, talent, and opportunity makes it a cornerstone of its future vision.