NEW DELHI: At least three Indian auto component makers—Sona Comstar, Gabriel India and Varroc Engineering—have tied up with global auto part companies looking to expand their India play to add products and capabilities in new technologies and catch up with larger rivals.
The partnerships this fiscal span areas ranging from electric and hybrid powertrains, advanced driver assistance systems (ADAS), advanced automotive seating systems and electric vehicle battery packs, among others, as Indian part makers look to expand their presence in the premium and electric vehicle segments.
has partnered with Japan’s Denso for automotive powertrain technologies. Gabriel India has tied up with South Korea’s HL Klemove for ADAS and automotive electronics and France’s Forvia for advanced seating systems. Varroc has partnered with Suzhou Tolyy Optronics Co of China to localize digital cockpit solutions, including display modules, for global vehicle programmes and with Forsee Power of France for EV battery packs.
While joint ventures are not new in the auto parts sector, the back-to-back partnership agreements with global companies indicates an urgency to catch up with advanced technologies and designs to tap growing opportunities in the domestic market.
“The Indian component industry has to get into the higher gear to be globally competitive not only in manufacturing and capacity but also in ‘creation’ of proprietary solutions,” said Avik Chattopadhyay, founder of the Indian School for Design of Automobiles. “For this, the focus on indigenous design and research capabilities is crucial.”
To be evaluated at the same level of a Bosch or Aumovio, Indian component brands must build their own design strength through internal design studios and also collaborations with design domain experts, he said.
“To be recognized globally, the component industry has to be creatively competitive,” Chattopadhyay added.
Broader strategy
The partnerships point to a broader strategy among Indian component makers to tap global technology and engineering expertise to move into faster-growing areas rather than build expensive new capabilities from scratch. Global suppliers are using these tie-ups to deepen their presence in India without building the entire local ecosystem themselves.
India is a key growth market for global carmakers. Company, Renault SA, Suzuki Motor Corp, Honda Motor Company and Stellantis NV are stepping up investment commitments in the Indian market and plan a product offensive to tap the growing passenger vehicle market, which is expected to hit the 5 million mark this year.
Upgrading capabilities in premium features in vehicles and advanced technologies driving software have become key owing to the rising share of SUVs from about a fourth of the passenger vehicle market in FY19 to more than half in FY26.
, which are software defined and have advanced tech features, are also witnessing high growth, with an 84% surge in sales to almost 200,000 units in FY26, as per the Federation of Automobile Dealers Associations. The share of EVs in passenger vehicles rose to about 8.5% in September from 5.7% a year earlier.
Gurugram-based Sona Comstar’s partnership with Denso is aimed at building capabilities in electric and hybrid powertrains, the company said in July. The partners are setting up two joint ventures in India.
One will develop high-voltage traction inverters, traction motors and generators for electric and hybrid passenger vehicles, commercial vehicles and other applications. Denso will hold 51% and have management control, while Sona Comstar will hold 49%.
The second venture will focus on electric and hybrid powertrain systems for two- and three-wheelers, including traction inverters, motors, generators and e-axles. Sona Comstar will hold 51% and retain management control, while Denso will hold 49%.
“This partnership will also accelerate the growth of our existing electric powertrain business for two- and three-wheelers by strengthening our capabilities across the powertrain value chain and enabling us to serve a broader set of customers,” Vivek Vikram Singh, managing director and group chief executive officer of Sona Comstar, said in a statement on 22 July.
Tech-heavy segments
Gabriel India, the flagship auto-ancillary company of the Anand Group, is using partnerships to move into technology-heavy segments. It announced a partnership with HL Klemove in August to manufacture and sell autonomous-driving solutions, including ADAS and automotive electronics. Gabriel India plans to acquire a 30% less one share stake in HL Klemove India for $98.44 million ( ₹935 crore).
The company formed a separate joint venture with Forvia earlier this month to make advanced automotive seating systems in India. Forvia will hold 50% plus one share in the venture, while Gabriel India will own the remainder. According to the company, the venture will make next-generation seating systems as automakers increasingly seek suppliers capable of providing more integrated, technology heavy systems.
“This partnership is a natural extension of Gabriel India’s transformation into a broader mobility solutions enterprise,” Jaisal Singh, vice chairman of the Anand Group, said during the announcement.
Varroc Engineering has taken a similar route into digital cockpits, partnering Tolyy in July to localize and manufacture next-generation display solutions and controllers for passenger and commercial vehicle programmes as automakers upgrade the interior experience of vehicles.
Tolyy will supply integrated display modules and key electronic components, while Varroc will undertake localization, integration, validation and final assembly in India. The partnership targets car makers in India, Europe and North America.
The company also agreed to form a joint venture with Forsee Power to expand into packs this month. Varroc will acquire a 45% stake in Forsee Power India and take management and operational control. The venture will initially focus on battery packs for electric three-wheelers, with plans to expand into two-wheelers, light commercial vehicles, buses, trucks and industrial vehicles.
“Our partnership with Forsee Power brings together complementary strengths in battery-system technology, automotive engineering, manufacturing and customer relationships,” said Arjun Jain, whole-time director and CEO, Business I, Varroc.