Tenneco Clean Air India Ltd is planning to set up a new plant to expand its manufacturing capacity for advanced ride technologies, on account of strong demand for its DaVinci DCx suspension technology, said a senior company official.

The auto component maker’s patented suspension technology was first introduced in Mahindra & Mahindra’s XUV 7XO, but has since garnered a lot of interest from other original equipment manufacturers.

“After the first application, interest has come from across the industry, and most automakers want to evaluate and adopt this technology,” Arvind Chandra, CEO of Tenneco Clean Air India, told Autocar Professional. “Demand has picked up so sharply that we are having to prioritise programmes and manage customer expectations.”

The company is evaluating greenfield investments to cater to the strong demand. “We may set up a new plant. It could be in the south or the west,” Chandra said. However, he did not disclose the investment outlay or timeline for setting up the plant.

“We are entering a phase where capacity expansion is inevitable. The pipeline is strong, particularly on the suspension side,” he said. “Now it is about scaling up responsibly, ensuring we deliver consistently to all customers, and building capacity in line with this strong pipeline,” he said.

Currently, Tenneco Clean Air India operates across two core segments, Clean Air and Powertrain Solutions, and Advanced Ride Technologies. The clean air division contributes about 53% of value-added revenue, while ART accounts for 47%.

The company has 12 plants across key hubs, including Pune, Chennai, Hosur, Bawal and Sanand, along with two R&D centres in India. Its operations span passenger vehicles, commercial vehicles and aftermarket segments, with PVs contributing the largest share (64%).

Ride Tech to Outpace Clean Air Business

Tenneco expects its advanced ride technologies business to grow faster than its clean air division in the coming years, signalling a gradual shift in its revenue mix as demand for premium ride solutions rises.

“Right now it’s 53% clean air and 47% ride tech. It could switch, but it will not be drastic because it takes time,” the CEO said, adding that both segments are expected to post double-digit growth.

Industry demand drivers such as tightening emission norms continue to support the clean air business, while premiumisation and rising consumer expectations around ride comfort are accelerating growth in suspension technologies.

DaVinci DCx

Unlike semi-active or fully active electronic suspension systems, DaVinci DCx uses specially engineered discs, or shim stacks, that regulate hydraulic flow depending on road impact frequency. The result is adaptive damping delivered through mechanical architecture rather than electronics.

“What DCx does is it gets you 90% of the way,” Chandra said, contrasting it with electronic systems that can cost up to ₹2 lakh per wheel in ultra-premium vehicles.

DaVinci DCx eliminates sensors, motors and ECUs. “You don’t need complex software or electronics integration,” he said.

The incremental cost over a conventional suspension is only a few thousand rupees. “It’s the cost of a dinner for two at a five-star hotel,” Chandra added. This makes it viable for vehicles in the ₹4–₹30 lakh bracket, which accounts for the bulk of India’s PV volumes.

He estimates the technology could address 60–70% of the Indian PV market, giving it significant mass-market potential.

Export Potential

Global Tenneco teams are also evaluating the platform for China and European markets. “Now that it’s successful in India, even China is looking at it, Europe is looking at it,” Chandra said.

Exports already form a higher-margin mix for the company compared with domestic business. With recent tariff and duty reductions in the US and EU, management expects export growth to accelerate further. If adopted globally, DaVinci DCx could evolve into a scalable mechanical platform beyond India.

DaVinci DCx is already operating at healthy margins, but Chandra indicated that the larger opportunity lies in localisation-led efficiency gains rather than pricing expansion. As localisation increases, logistics costs, import dependencies and material overheads are expected to reduce. This will further strengthen margins through improved cost structures and operating leverage.

Financially, Tenneco India reported strong growth in FY26. For the nine months ended December 2025 (9M FY26), the company posted value-added revenue (VAR) of about ₹3,512.2 crore, up 10% year-on-year, and profit after tax (PAT) of ₹437.6 crore, reflecting steady operational performance and margin improvement.