Schaeffler India to Start Revenue Gains from Relocated UK Clutch Line by Year-End

Schaeffler India Limited which is relocating a clutch manufacturing line from its Sheffield (U.K). operations to its plant in Hosur, India expects it to begin contributing to revenue towards the close of the current  year or early next year, the company management stated  during the company’s Q3 CY25 earnings conference call 

The company had first revealed its relocation plan at the end 2024. 

The transfer, which is currently underway with installations in process, is a key focus for the company as it seeks to leverage its Indian infrastructure to meet rising domestic demand and capitalize on existing investments. 

Capacity and Domestic Focus

The primary driver for moving the production line is to address capacity constraints within India. Upon activation, the line is heavily geared toward the local market, with 80% of its output designated for domestic consumption, and the remaining portion allocated for exports

This strategic relocation aligns with a broader trend driven by the global automotive industry’s shift toward electric vehicles (EVs). In Europe, where technology is rapidly moving from traditional Internal Combustion Engine (ICE) components to EV platforms, machines dedicated to ICE production risk becoming idle. Conversely, India’s ICE market continues to exhibit growth, registering approximately 3% to 4% growth.

"As the need arises, we will certainly evaluate the availability of such equipments... in the elsewhere in the Schaeffler world and we will definitely take those calls to ship them or move them to India if there is a need," the management  noted, adding that relocating idle lines is preferable to fresh investment in new equipment. 

Robust Automotive Demand

The move comes as Schaeffler India’s Automotive Technology segment, which includes components for both traditional and electric vehicles, reported strong year-to-date growth of 18.7% compared to the prior year's nine-month period. The company has secured new business wins within the automotive space, including clutch applications and hydraulic tensioners for passenger vehicles.

The company top leadership stated that the  recent clarity on Goods and Services Tax (GST) reforms in September is expected to serve as a catalyst, driving stronger demand and traction in the automotive sector. 

Overall localization content reached 79% in the quarter, with a stated target to continue moving toward 80%. Localization within the automotive portfolio specifically is already robust, typically resting in the range of 85% to 90%.