India is steadily becoming a key growth and export hub for auto component maker Tenneco, even as global supply chains face fresh disruptions and cost pressures.

The US-based auto technology major expects India to contribute a larger share to its global business over time, supported by strong domestic demand, rising exports and localisation efforts.

“India is the fastest-growing region for us. It is also one of the most profitable,” Arvind Chandra, CEO of Tenneco Clean Air India Ltd, told Autocar Professional. At present, India contributes around 5–7% to the company’s global revenue. This is expected to grow to about 10% in the next few years, driven by higher growth compared to other regions.

In the first nine months of FY26, Tenneco India reported value-added revenue (VAR) of about ₹3,512.2 crore, up 10% year-on-year, and profit after tax (PAT) of ₹437.6 crore. Its EBITDA margin stood at 19%.

Exports Gain Traction

Tenneco expects export contribution to rise from about 5–7% of sales to nearly 20% in the coming years, led by both clean air and suspension businesses.

“The weaker rupee makes us more competitive. That is one of the reasons why our export order book is improving,” Chandra said.

The company also benefits from tightening emission regulations in India, which are now comparable to global standards. This allows it to use India as a manufacturing base for global markets.

Recent trade agreements between India and developed markets such as the UK, EU and US are expected to further support exports.

Currently, Tenneco Clean Air India 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%).

Localisation Push

Alongside exports, localisation is becoming a key strategic priority.

Tenneco has already achieved around 90% localisation in its India operations. However, for newer technologies, localisation levels remain lower.

“For new technologies, localisation is still in the early stages. Over the next two to three years, we aim to move towards 85–90%,” Chandra said.

The push is aimed at reducing import dependence and improving cost competitiveness, especially amid global supply uncertainties.

Supply Shocks

The company has been dealing with rising input costs due to global disruptions, including conflict in the Middle East.

Raw material prices and energy costs have increased sharply. “Steel prices have gone up by about 7%. Gas costs have also risen significantly. Freight costs are up nearly 20%,” Chandra said.

Despite this, demand remains stable for now. Automakers have not yet cut production schedules, though discussions around potential reductions are emerging.

“There is no immediate change in demand. But there is uncertainty. We will have more clarity in the next few weeks,” he added.