Uno Minda will maintain a strong investment focus on capacity expansion and new capabilities in FY27 as it seeks higher value addition and market-share gains in its existing businesses while scaling electric-vehicle and other emerging technology platforms, Managing Director Ravi Mehra said.
The auto-component maker expects the automotive industry to sustain its growth momentum during the current financial year and beyond. It plans to follow a dual strategy of expanding core businesses and building new product segments linked to electrification, connected vehicles and vehicle premiumisation.
“Uno Minda will continue to execute its dual strategy, driving vertical growth in core businesses through higher value addition and market share gains while simultaneously scaling new age and emerging technology platforms,” Mehra said in his address to shareholders in the company’s FY26 annual report.
The company will continue investing in capacity and capability enhancement as part of what Mehra described as its “most ambitious manufacturing expansion to date”.
FY27 is expected to be a major execution year for Uno Minda. Seven of its 12 ongoing projects are either scheduled to begin production or move through the ramp-up phase during the year.
The company will also enter two new product categories commercially – four-wheeler EV powertrains and sunroofs. Revenue from the investments is expected to gradually strengthen its consolidated financial performance over the next two to three years, Group Chief Financial Officer Sunil Bohra said.
However, Uno Minda has not provided a specific revenue-growth or operating-margin target for FY27 in the annual report.
EV Powertrain Plant to Begin Production
A central part of the expansion is Uno Minda’s entry into high-voltage EV powertrain systems for passenger and commercial vehicles. The company is setting up a greenfield high-voltage EV-powertrain plant at Khed City in Pune through its subsidiary, Uno Minda Auto Innovations. The business uses technology from Inovance Automotive, which is expected to take a 30% stake after receiving the necessary regulatory approvals.
The project has an estimated cost of ₹423 crore, with the capital expenditure to be spread over three years. Its first phase is expected to be commissioned in the second quarter of FY27.
The plant will manufacture high-voltage products such as combined charging systems, e-axles, inverters and electric motors.
Mehra said electrification represented the company’s most significant structural growth opportunity. “As EV penetration accelerates across the 2W, 3W and 4W segments, Uno Minda must be – and is becoming – the natural choice for the full drivetrain ecosystem, not merely individual components,” he said.
The company has created a separate Green Mobility reporting vertical covering EV systems, alternative-fuel products and four-wheeler electric powertrains.
Uno Minda has also announced a second passenger-vehicle EV powertrain facility at Chhatrapati Sambhajinagar in Maharashtra. The ₹550-crore plant will manufacture electric drive units and dedicated hybrid transmissions, with production targeted to begin in the second quarter of FY28.
A related casting facility, with an investment of ₹210 crore, is also planned in the region to help localise components for electric and hybrid systems.
Sunroof Business to Start in Q4
Uno Minda’s new sunroof plant at Bawal in Haryana is targeted for commissioning in the fourth quarter of FY27. The ₹62.5-crore facility is being established under a technology licensing agreement with Japan’s Aisin Corporation.
While the project began with an order from one anchor customer, Uno Minda has since secured two additional orders, including one from a new customer, according to the annual report.
The company expects sunroofs, sensors, advanced driver-assistance systems and airbags to become important growth areas as features earlier limited to premium vehicles move into mass-market models.
Higher feature adoption can increase Uno Minda’s revenue per vehicle even if overall vehicle production grows at a slower pace.
The company is also seeing opportunities in haptic and intelligent switches, adaptive lighting, ambient lighting and alloy wheels.
New Alloy-Wheel Capacity
Uno Minda is setting up another two-wheeler alloy-wheel plant at Bawal with an annual capacity of around 1.5 million units. The facility involves an investment of around ₹200 crore and is expected to begin commercial operations in the second quarter of FY27.
The company believes alloy-wheel penetration has significant room to rise as consumers move towards premium and more feature-rich vehicles.
Uno Minda’s broader portfolio remains largely independent of the type of powertrain used in a vehicle. It supplies switches, lighting, seats, airbags, sensors, cameras, alloy wheels, infotainment systems and other components across petrol, diesel, CNG, hybrid and electric vehicles.
This reduces its dependence on the speed at which the market moves from internal-combustion engines to electric powertrains. At the same time, the company is expanding its exposure to EV-specific products such as e-axles, motors, charging systems, inverters, vehicle-control units and battery-disconnection systems.
Smart Factories and Localisation
Uno Minda also plans to expand its smart-manufacturing programme across its factory network over the next three years.
The company has started artificial intelligence-led pilots at three plants. These cover machine-vision quality inspection, predictive maintenance using sensor data, production scheduling and real-time energy optimisation.
Mehra said the projects were not limited to experimental use and would form the base of a plant-by-plant digital transformation programme.
Builds on FY26 growth
The expansion programme follows a year of double-digit financial growth. Uno Minda’s consolidated revenue rose 17% to ₹19,658 crore in FY26. Earnings before interest, tax, depreciation and amortisation increased 20% to ₹2,251 crore, while the EBITDA margin stood at 11.5%. Profit attributable to shareholders increased 27% to ₹1,197 crore.
The company expects healthy domestic vehicle demand, increasing EV penetration and government support for advanced manufacturing to aid growth in FY27.
Commodity-price movements and changes in global trade conditions remain risks. Uno Minda, however, believes its diversified product portfolio, growing localisation and relationships with vehicle manufacturers provide protection against some of these pressures.
Mehra said the company’s strategy would remain centred on innovation, localisation and customer requirements as it expands manufacturing and enters new technology areas.