Modern Automotives, based in Gurugram and known for supplying critical components for powertrain, suspension, and chassis systems across two-wheelers, passenger vehicles, and commercial vehicles, is aiming for a 25% compound annual growth rate through FY2031. The company is scaling up its product offerings by evolving from a component manufacturer to a system integrator.
It has begun production of front fork assemblies for scooters and motorcycles, expanding its capabilities to add greater value to its portfolio. In addition, Modern Automotives is adopting cold forming technology, enabling it to manufacture advanced products such as splined shafts, toothed gears, and deep-extruded transmission shafts to cater to industries including automotive, aerospace, electronics, and thermal engineering.
A new cold forming facility is being established at its main plant in Mandi Gobindgarh, Punjab, to support this expanded scope. The company continues to supply major two-wheeler OEMs like Honda Motorcycle & Scooter India, Yamaha, and TVS Motor. It also exports differential pinion shafts for electric vehicle powertrains to BMW Germany, with an order to deliver 2.5 million units worth ₹150 crore by 2034. Exports are expected to contribute 25% of revenue by 2025.
In the passenger vehicle space, it supplies gears to Musashi Auto Parts India for use in Honda Cars India’s manual transmissions and provides components like steering arms and knuckles to several domestic manufacturers. Modern Automotives recorded ₹500 crore in revenue for FY25 and aims to triple that figure in five years. The company is also targeting a rise in EBITDA margin from the current 13% to 20%, and plans to invest ₹150 crore in FY26, with 2–3% of revenue allocated annually to R&D.
The company’s production capacity is set to increase from 36,000 to 60,000 metric tonnes by FY31. Investments in automation and Industry 4.0 technologies are underway at its plants in Punjab, Karnataka, Gujarat, and Manesar to enhance productivity.
In parallel, Modern Automotives has entered the electric mobility segment through Bhago Mobility, a venture focused on electric L5 three-wheelers. These vehicles are currently operating in pilot mode in Bengaluru and Delhi for goods and passenger transport. An initial investment of ₹15–20 crore has gone into research, development, and fleet deployment.
On World EV Day, September 9, 2024, Bhago Mobility partnered with Honda Power Pack Energy India to integrate battery-swapping technology into its fleet. The solution allows quick battery replacement, enhancing operational uptime. The e-3Ws are to be positioned near metro stations within a 10 km radius in Bengaluru and Delhi to offer fast, accessible, and eco-friendly transport.
The long-term goal of the e-mobility initiative is to reshape last-mile logistics by making sustainable transport more profitable and accessible, especially for micro-entrepreneurs. Plans are also underway to introduce solar-powered charging hubs and fleet optimization tools.
Looking ahead, the company is preparing for strategic acquisitions in 2025, supported by a fund of around ₹500 crore. These acquisitions will focus on adding technological depth and new capabilities, aligning with Modern Automotives’ growth strategy built around innovation and advanced manufacturing.
