Tenneco India Sharpens Growth Strategy with Expansion and Acquisitions
Chennai-based Tenneco Clean Air India Ltd (TCAIL), the Indian arm of the US-headquartered Tenneco Group, a $17-billion Tier-1 auto parts supplier, is intensifying its growth strategy in the country. The company aims to capitalize on India's favorable automotive cycle and sustain double-digit growth in the coming years through a combination of capacity expansion and inorganic opportunities.
Capacity Expansion to Meet Rising Demand
On the manufacturing front, TCAIL is evaluating the addition of two to three new factories, as some of its existing plants are nearing full capacity. The proposed units are likely to be established in western and southern India, strategically located closer to passenger vehicle (PV) original equipment manufacturer (OEM) hubs. This expansion is driven by strong growth visibility in the PV segment and increasing demand for advanced suspension systems.
Exploring Acquisitions for Strategic Growth
Alongside organic expansion, Tenneco is actively exploring acquisitions to deepen its presence in adjacent segments and new technologies. Arvind Chandra, CEO and whole-time director of TCAIL, stated in an interaction at the Hosur facility, "As a zero-debt company with robust cash flows, we have the flexibility to raise $400–500 million for acquisitions." He added, "We are looking at opportunities in areas such as transmission and braking, as well as technology-led businesses. The idea is to integrate these companies, improve margins through our operational frameworks, and leverage our OEM relationships to scale them." Over the next five to seven years, the company's growth in India will be driven by a mix of organic and inorganic initiatives.
India as a Key Growth Engine
Following its listing on Indian bourses last year, TCAIL—with annual revenues of about Rs 5,000 crore, 12 factories, and two R&D centres—is positioning India as a key growth engine. Its portfolio in the country is balanced between engine and chassis components, with a strong presence in suspension systems. The company holds approximately a 52% market share in shock absorbers and struts.
Chandra highlighted, "One in two passenger vehicles in India runs on shock absorbers produced by Tenneco. Going forward, we see strong potential to double volumes by 2030 and increase our market share to 60%–65%, driven by our advanced suspension technologies, DaVinci DCX and CVSA (Control Valve Semi-Active)."
Investing in R&D for Future Innovation
To strengthen its engineering capabilities, TCAIL is investing in a new R&D facility in Hosur, with an investment of a couple of million dollars. The company currently has around 150 R&D personnel, and this number is expected to grow to at least 200 over the next few years, supporting its innovation and market expansion goals.
This strategic move underscores Tenneco's commitment to leveraging India's automotive growth potential through both internal development and external partnerships.
