MAHLE GmbH expects its India revenue to double to around €1 billion over the next three to five years, as the country emerges as its fastest-growing market and a key pillar in its global growth strategy.
“We expect our revenues (from the region) to double to 1 billion euros over the next three to five years,” said Arnd Franz, Chairman of the Management Board and CEO of MAHLE Group. The company expects continued strong growth to supported by the value added tax reform introduced in 2025.
India accounted for 4% of MAHLE’s global sales in 2025. It was the fastest-growing emerging market for the German auto component major, with sales rising over 10% (and more than 20% on an exchange-rate-adjusted basis). This came at a time when several global markets remained under pressure due to geopolitical uncertainty, rising energy costs, currency volatility and weak demand.
The company has also identified the country as a priority geography for future investments, driven by robust domestic demand, improving manufacturing competitiveness and its increasing role in global supply chains. “And that’s why we are going to make further investments and put a strategic focus,” Franz said.
Export Opportunity
MAHLE indicated that India is not only a growth market but also an increasingly important part of its global footprint, both from exports and technology standpoint.
The component maker sees the India-EU free trade agreement as a structural positive that could further strengthen India’s role in its global supply chain.
“We take a fully positive view on the free trade agreement. For many years, we have tried to increase exports from India. And very often, this kind of failed due to massive trade restrictions. And that is now changing fundamentally. We have now received major orders from American customers for products to be exported from India,” Franz said.
“This is only the first indication of many other projects which are going to follow, which we are going to win in India,” he said.
MAHLE currently exports from India through two channels, distribution partners in neighbouring South Asian markets such as Sri Lanka, Bangladesh, Nepal and Bhutan, and inter-company supplies within its global network.
However, the company remains cautious about ongoing geopolitical uncertainties, including conflicts in West Asia and trade tensions, which continue to impact global demand, supply chains and cost structures.
“We will see higher costs in raw materials, energy and logistics,” he said, adding that, “We also see a certain impact in terms of consumers’ uncertainty when it comes to new purchases. So we will not see a positive impact on vehicle production and vehicle sales.”
He noted that the disruption of oil and gas flows through the Strait of Hormuz could drive-up energy prices. “The 20% oil and gas volumes that currently are stuck in the Strait of Hormuz, they will lead to an increase in energy prices,” he said, adding that prices could rise by as much as 20% if supply does not normalise.
Franz flagged supply-side risks for India, where operations have already seen some disruption. “We see a certain threat to our production in India. Shifts have to be already cancelled due to a lack of energy. And that’s something we’ve got to manage very closely and thoroughly.”
Despite these challenges, he said the company is not looking to alter its India strategy in the near term, even as logistics costs rise due to disruptions in the region.
Strong Base
MAHLE has built a sizeable presence in India, with 11 production facilities and a workforce of over 4,600 employees, positioning the country as a key manufacturing base within its global network.
The company also operates a technology centre in Pune, underscoring its growing engineering capabilities in the region. Over the years, India has evolved beyond a manufacturing hub to become an integral part of MAHLE’s global development ecosystem.
MAHLE increasingly leverages India for research and development, particularly in areas such as electrification, thermal management and cost-optimised engineering solutions for global markets.
“India has become an important hub also for our R&D activities. And for that reason, we are not only using the production potential in India, but we're also using the R&D and technology potential that we see in India,” Franz said.
Performance Backdrop
MAHLE reported a mixed financial performance in 2025, with sales declining to €11.3 billion amid weak demand in Europe and North America and adverse currency movements, even as adjusted profitability improved.
The Stuttgart-based auto component maker net profit edged lower to €20 million from €22 million in 2024. EBIT fell sharply to €228 million from €423 million, with the EBIT margin declining to 2.0% from 3.6%.
However, the company’s adjusted EBIT rose to €442 million from €347 million, with the adjusted EBIT margin improving to 3.9% from 3.0%, reflecting gains from cost controls and operational efficiencies.
Against this backdrop, the company is increasingly leaning on growth markets like India to drive the next phase of expansion, as it balances global headwinds with regional opportunities.