Brose India Automotive Systems, the Indian arm of the €8 billion German auto component giant, is planning significant growth through joint ventures, mergers, and strategic partnerships. CEO of Brose Group, Dr. Philipp Schramm, stated that the company is focusing on carefully selected opportunities for expansion, without committing to a fixed investment budget. The priority, Schramm emphasized, is finding the right fit for long-term growth.
Brose’s strategy builds on its history of successful partnerships, including joint ventures with family-owned companies in South Africa and Turkey. Schramm indicated a similar approach for the Indian market, aiming to grow organically while making bold decisions to boost profitability and market share.
Financially, Brose India has faced challenges, with revenues growing to €45 million (approx. Rs 400 crore) in 2023 despite post-pandemic regulatory issues and market slowdowns. The company had earlier recorded a turnover of Rs 226 crore in FY2022, up from Rs 147 crore in FY2021, but its pre-COVID figures were stronger, reaching Rs 232 crore in FY2018.
Brose India is aligning its operations with the Group’s global strategy, introducing new products like electric power liftgates and motorized retractors, especially for the rapidly expanding SUV and electric two-wheeler markets in India. Schramm noted that Brose has won new orders in India due to rising consumer demand for advanced automotive technologies.
India plays a crucial role in Brose’s global operations, not only as a sales market but as a production and development hub. With over 600 engineers and software developers working at its Pune facility, Brose India supports both local and international operations, particularly in IT and electronics. Schramm stressed the importance of moving away from viewing India merely as a low-cost location, highlighting the value of Indian engineers and their contributions.
Despite regulatory hurdles, Brose sees immense potential in the Indian market. The company’s focus on localization, engineering innovation, and meeting the unique demands of Indian OEMs positions it for long-term success as India’s automotive industry continues to grow.
