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Klaus Rosenfeld, Chief Executive Officer, Schaeffler AG
Schaeffler AG, the German motion technology company, will invest €500 million in India over the next five years, its global CEO said. The investment of €100 million annually will be utilised for ramping up capacity and increasing localisation in India.
The manufacturer aims to register a double-digit growth in its India operations. It makes products for e-mobility, bearings and industrial solutions, powertrain and chassis, special machinery and vehicle lifetime solutions in India.
“We are looking for opportunities to grow our business in India, and are committed to investing here. We plan to invest nearly €100 million every year, and over time, it will also increase the revenue base of the company,” said Klaus Rosenfeld, Chief Executive Officer of Schaeffler AG, during a media roundtable.
Schaeffler AG has operations in four main regions across the globe, including America, Europe, Greater China and Asia Pacific. The company manages the Asia-Pacific operations out of Singapore owing to its connectivity across the region.
Schaeffler has been operating in India for nearly 62 years. It inaugurated its fifth manufacturing facility in Shoolagiri, Tamil Nadu, which will manufacture clutches. Schaeffler India had an 11.8 per cent year-on-year revenue growth rate in 2024.
Dealing with tariffs
Weighing in on the current tariff-related turmoil that countries are grappling with, Rosenfeld said that while tariffs across the world are challenging, the solution is to increase localisation.
“We are moving to a multi-polar world where the old idea of free trade is challenged. We are now going to move into a world where negotiations happen. When you look at Europe, it is not without tariffs. For Europe, it is a wake-up call because it is about competitiveness. I believe we can deal with it if we are open-minded, which means localisation and investing in capacity, not just financial capacity but also human. India has shown over the last years, even in difficult situations, that it is a very reliable partner. The UK-India trade arrangement should be a template for the EU,” he said.
While the company is positive on growth in the Indian automobile market, Rosenfeld pointed out that infrastructure is a challenge. “We see the potential of four million cars going up to eight million. The question is not whether customers are willing to buy; mobility is a big driver of prosperity. There is a bit of a problem with infrastructure, and when you see the congestion on roads, it is difficult to imagine more cars on the roads. That is also a reason why we should think beyond automotive,” he said.
By 2030, the company believes that the share will comprise 30 per cent ICE vehicles, 35 per cent hybrid and 35 per cent born-electric vehicles globally.
“The EV adoption will increase if the price of a battery electric car is equal to that of an ICE car. That is what is happening in China. We need to face the competition and see how we can further improve. Eventually, the car business is a consumer business,” added Rosenfeld.
Localisation plans
Schaeffler India is looking to expand its presence in the manufacturing of components for electric two-wheelers and will also increase localisation in the country. Currently, it localises 76 per cent of its products in the country.
“We are present in the two-wheeler segment and offer products, we are looking at electric two-wheelers as a big opportunity. We see potential to increase localisation in many sectors, including wind. The turbine manufacturers are increasing their capacities, and that would call for a new portfolio of products, which until now we have been importing. We plan to localise them. We are looking at investing in localisation in every sector,” said Harsha Kadam, Chief Executive Officer and Managing Director, Schaeffler India.
Published on May 28, 2025
This article first appeared on The Hindu Business Line
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