Schaeffler Sees Hybrids and Automatics as Key Growth Areas in India

As India’s automotive market matures, Schaeffler is witnessing a surge in demand for automatic transmissions and hybrid technologies. The company is positioning itself to capitalise on these emerging growth areas by ramping up localisation efforts, expanding capacities, and strengthening collaborations with key automakers to meet evolving market needs.

“With growing (dual-clutch transmissions) volumes, localisation is the logical next step, which is why we are setting up a new plant at Hosur,” said Harsha Kadam, Managing Director and Chief Executive Officer of Schaeffler India. The component maker will manufacture the transmission products at the Hosur plant, which is likely to be commissioned in a quarter or so. 

Schaeffler India has seen strong traction for dual-clutch transmissions, where it enjoys substantial brand equity. “As the market begins to mature and evolve, we increase our offerings. We see our DCT offerings going up as well. Earlier we were importing but as volumes have begun to come we have now localised production,” Kadam said. 

Hybridisation Gains Momentum

While electrification is accelerating globally, hybrid adoption in India is being led by Japanese automakers. These companies favor a phased transition from internal combustion engines (ICE) to hybrids before moving to battery electric vehicles (BEVs).

“We have secured key business wins and have already begun local production, though volumes are still small. However, hybrids and ICE vehicles will likely coexist in India due to uncertain policy directive,” Kadam explained. 

Currently, only Maruti Suzuki India, Toyota, and Honda Cars India offer hybrid vehicles in the mass market passenger vehicle segment. In 2024, Hybrid cars saw steady growth in sales, recording a 7% increase. According to Vahan data, hybrid passenger vehicle sales, which include diesel hybrids, petrol hybrids, plug-in hybrids, and strong hybrids, grew to over 3.55 lakh units in 2024, up from 3.32 lakh units in 2023. Of these, petrol hybrid models dominated the segment with sales of about 2.94 lakh units.

Compared to Hybrid vehicles, the EV industry is still at a nascent stage in India due to sluggish adoption. This has been widely attributed to limited charging infrastructure, range anxiety among buyers, high cost compared to ICE counterparts, and limited offerings. However, the competition in the EV market in India is expected to heat up in 2025, on the back of launches by legacy automakers such as Maruti Suzuki India, Mahindra & Mahindra and Hyundai Motor India. 

Global Trends and India’s Path

Schaeffler recognises that different global markets have varied approaches to electrification. “Western markets favour a direct move from ICE to BEVs, while Japanese manufacturers advocate transitioning through hybrids. India requires technology customisation, and Schaeffler is well positioned to support this transition, especially with our growing collaborations with Japanese automakers,” Kadam said.

With increasing localisation, rising demand for automatic transmissions, and a clear EV transition strategy, Schaeffler is strengthening its presence in India’s evolving mobility landscape, ensuring it remains a key player in the industry’s transformation.