MAHLE Sees India–EU FTA as Growth Catalyst, Targets €1 Billion Business in India

The proposed India–EU Free Trade Agreement (FTA) could unlock a new wave of growth for German Tier-1 supplier MAHLE, which sees India not only as a fast-expanding domestic market but also as a global export hub. The €11.7 billion automotive group currently generates just over €400 million in revenues from India and expects to scale this to €700–800 million within five to seven years — with a medium-term goal of crossing the €1 billion mark.

Speaking to select Indian media at the IAA Mobility Show 2025 in Munich, Arnd Franz, CEO of MAHLE, said: “The FTA will just accelerate the way we grow in India. Export opportunities into Europe are substantial. We have distribution systems ready in Europe and Indian plants with a high level of excellence. The combination is very powerful.”

Franz outlined a broad-based India strategy covering thermal management, electrification, aftermarket, and exports. MAHLE is localising complex components such as electric HVAC compressors, co-developing complete system solutions with Indian OEMs, and working with both established players and start-ups in the electric two-wheeler space. “India is technologically one of the most interesting markets worldwide,” he said.

The aftermarket — now branded as “Lifecycle and Mobility” — is another growth lever. MAHLE is extending beyond filters and radiators into diagnostic systems, AC service tools, and battery health testers, ensuring vehicles remain safe and efficient throughout their lifecycle.

MAHLE is also actively building India into an export hub, with recent wins including a complete thermal system order from a Saudi Arabian automaker. Opportunities are being pursued across the Middle East, farming, and off-highway segments. Franz believes the India–EU FTA will multiply such prospects, making Indian plants central to MAHLE’s global supply chain.

For a company with global sales of €11.7 billion in 2024, India’s current €400 million share may look modest. But with more than a dozen plants, full local R&D capability, and a sharp focus on clean mobility, India is positioned to become a billion-euro-plus pillar in MAHLE’s global operations. “The sky is open for India,” Franz concluded. “With localisation, innovation, and the FTA opening up Europe, the India story for MAHLE will only get stronger.”