Kinetic Engineering Ltd. (KEL), a key player in India’s automotive components industry, unveiled a major strategic initiative involving a convertible warrant issue worth INR 1.7 billion. The warrants, with an 18-month conversion period, include an initial investment of INR 550 million by March 2025 from the promoters. This represents 25 percent of the warrant subscription amount for future investments, pending approval from SEBI and shareholders. Additional commitments include INR 171 million from external investors with notable contributors such as Transaction Square LLP and Sai Geeta Penumetsa.

The phased investment plan allocates INR 600 million by March 2025, followed by INR 440 million by March 2026 and INR 730 million by March 2027. This capital infusion supports KEL’s goal of achieving a revenue target of INR 10 billion by 2029, a dramatic increase from its current revenue of INR 1.5 billion. The strategy also aims to raise the promoters’ stake in the company from 59 percent to 70 percent by 2027.

Since 2017, KEL’s promoters have steadily increased their stake from 49 percent to 59 percent with the current initiative boosting holdings by an additional 11 percent. Approximately 93.5 lakh new shares will be issued to promoters, bringing their total to 2.26 crore shares and increasing the company’s outstanding shares to 3.26 crore by July 2027. The investment is led by founder and chairman Arun Firodia, supported by family trusts—the Arun Firodia Trust and Jayashree Firodia Trust.

The infusion of capital and warrant issuance highlights the promoters’ confidence in KEL’s long-term strategy, enabling the company to enhance working capital, improve manufacturing capabilities, and accelerate innovation in high-growth areas such as electric vehicle (EV) components.

Driving Growth Through EV and Innovation
KEL’s aggressive growth strategy focuses on an expanded export business, a diversified portfolio and cost-reduction initiatives. The company is sharpening its focus on EVs through its subsidiary, Kinetic Watts & Volts, incorporated in September 2022. The subsidiary is developing advanced drivetrain solutions, gear systems, and other innovative products set to be unveiled soon.

To deepen its footprint in the EV sector, KEL is bolstering its developmental capabilities and exploring collaborations with OEMs. Its long-term strategy emphasises sustainable growth, enhanced domestic and international market presence, and maintaining leadership in the automotive components sector.

The promoters’ commitment to increased investment and stake expansion underscores their confidence in KEL’s future, positioning the company to capitalise on opportunities in the evolving mobility landscape. With a focus on innovation, value creation, and strategic execution, KEL is poised for transformational growth in a competitive market.

Commenting on the development, Firodia said, “Kinetic Engineering Limited has over 50 years of experience in manufacturing. It has successfully transformed into an auto components business and enjoys strong relationships with the world’s largest OEMs. Leveraging these long-standing partnerships, we expect to finalise significant business deals shortly. Additionally, we are heavily focused on the EV segment, with plans for our subsidiary, Kinetic Watts & Volts, nearing finalisation. These initiatives will drive an 8x to 10x revenue growth, and we are pleased to make this investment to meet the required capital expenditure, working capital, and growth initiatives. This infusion of capital from the promoters reinforces our growth blueprint, enabling us to take bold strides toward achieving our INR 1,000 crore revenue milestone. We are committed to using this investment to fuel innovation, improve operational efficiencies, and meet the evolving demands of the automotive and EV industries.”

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Tata AutoComp Systems, through its British subsidiary Artifex Interior Systems, has completed the acquisition of 100 percent of the share capital of IAC Group (Slovakia). The entity has been renamed Artifex Systems Slovakia s.r.o.

The acquisition establishes a presence for Tata AutoComp in the European Union, specifically as a supplier to Jaguar Land Rover, Volkswagen, Audi and Skoda. The move is part of a strategy to unify Artifex operations in the UK, Sweden and Slovakia under a single identity.

Coinciding with the acquisition, Artifex has opened the Sweden Engineering Centre in Gothenburg. The facility is intended to support innovation and collaboration with regional partners and customers.

Artifex now operates with an annual revenue of USD 1.3 billion and a workforce of 4,100 employees across Europe. Its portfolio includes instrument panels, consoles, door trims and headliners.

Arvind Goel, Vice-Chairman of Tata AutoComp Systems, said, "The integration of Artifex Systems Slovakia s.r.o (formerly IAC Slovakia) has been successfully completed, marking a significant step in building the Artifex brand and advancing our global growth strategy. With this integration, we are now better positioned to deliver long-term value, operational excellence, and world-class quality to global OEMs."

Manoj Kolhatkar, MD & CEO, Tata AutoComp Systems, added, “In the light of this development, I would like to inform you that our European businesses demonstrate strong operational and cultural alignment. This integration will enable quicker decision-making, improved execution, and enhanced value delivery for our OEM clients in the region.”

Alan Fennelly, CEO, Artifex Interior Systems, stated, "We are proud to formally welcome Artifex Systems Slovakia (formerly IAC Slovakia) into the Artifex and Tata AutoComp family. Their skilled workforce, strong customer focus combined with great technical expertise will be key in accelerating our growth as we support the next generation of vehicle platforms."

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BWI Group has introduced an automated mode for its Semi-Active Roll Control (SARC) system, designed to address the weight challenges of modern SUVs and battery electric vehicles (BEVs). The update allows a vehicle's anti-roll bar to disconnect and reconnect on demand while driving.

For the unversed, BWI Group was incepted in 1909 as Dayton Engineering Laboratory Company (Delco). It is said to have created the first reliable electric self-starter for the global automotive market, and is now currently owned by China’s Beijing West Smart Mobility Zhangjiakou Automotive Electronics Co, led by Zhang Jia Kou Financial Holding Group (ZJKFH) and an assembled syndicate of key investors.

The SARC system aims to resolve the engineering conflict between ride comfort and handling. As SUVs now account for over half of European car registrations and BEVs weigh significantly more than internal combustion counterparts, chassis engineers have historically used stiff stabiliser bars that can compromise comfort.

Operational Data and Speed

The new mode uses vehicle data – including steering angle, speed, lateral acceleration, and yaw rate – to manage the anti-roll bar. During high-speed cornering, the system reconnects the bar in less than 200 milliseconds. When the bar is disconnected during normal driving, the vehicle maintains a more compliant ride.

At the centre of the technology is a rotary actuator and a self-contained hydraulic mechanism. Unlike mechanical alternatives, this hydraulic setup allows for connection and disconnection even when wheels are positioned at different heights. The system also features self-centring technology to ensure engagement across all suspension travel.

SARC is currently in production for several platforms, including the GWM Tank series. BWI Group expects the automated functionality to increase adoption in the SUV and BEV sectors, where managing vehicle mass is a priority for manufacturers.

Bruno Perree, Engineering Manager, BWI Group, said, “Chassis engineers are continually trying to improve road handling and comfort, but the two goals are often incompatible. The latest update to SARC removes that compromise, allowing engineers to optimise the roll bar purely for handling as it will be disconnected the majority of the time. This not only improves comfort but also adds significant off-road capability, which can be a key competitive differentiator in a crowded SUV market.”

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German automotive component supplier ZF India has secured a contract from an Indian original equipment manufacturer (OEM) to supply the AxTrax 2 LF electric portal axle. The technology will be utilised in 11-metre city buses and 18-metre articulated buses for domestic and export markets.

The nomination, confirmed in October 2025, involves a multi-year programme for several thousand units, with deliveries scheduled to begin in 2026.

The AxTrax 2 LF integrates propulsion, braking and suspension within a single unit. This architecture replaces the engine, transmission, and conventional axle, increasing space for passengers and batteries. The system uses the same mounting points as previous generations, allowing for backward compatibility.

The unit is built on a modular platform featuring:

• Dual PMS Motors: Two permanent magnet synchronous hairpin motors.
• Inverters: Two 800V Silicon Carbide (SiC) inverters.
• Power Output: Continuous power variants of 260 kW and 360 kW.
• Torque: Peak torque of 36,800 Nm.

An oil cooling system with an integrated e-pump manages temperature and lubrication to maintain performance. The system is compatible with battery-electric, hydrogen fuel cell and trolley bus configurations.

The axle includes software for torque vectoring, regenerative braking, hill hold, and axle condition monitoring. It is designed to meet ISO 26262 functional safety requirements and cybersecurity standards. The electronics are capable of receiving over-the-air (OTA) updates.

Akash Passey, President - ZF Region India, said, “AxTrax 2 LF enables OEMs to design buses that maximise passenger and battery space while delivering superior efficiency and reliability. Its compatibility with battery-electric; fuel cell and trolley bus platforms enable ZF to address the zero-emission mobility aspirations and reinforces the country’s emerging role in next-generation commercial vehicle technology.”

Paramjit Singh Chadha, Senior Vice-President - CVS, ZF Group (Region India), said, “By combining propulsion, braking, suspension, low noise, comfort, safety and intelligent electronics within a compact architecture, ZF helps OEMs simplify vehicle design and accelerate development timelines. Our focus remains on partnering with customers to enable reliable, efficient and future-ready solutions for zero-emission transportation in India.”

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Tier 1 automotive supplier Forvia Hella has appointed Juan Manuel Molla as the new Managing Director Lighting and member of the Management Board, effective 1 March 2026.

He succeeds Bernard Schaferbarthold, who has held responsibility for the Business Group Lighting on an interim basis, and has stepped down from the Management Board on 15 February 2026.

Molla, joins the company with over three decades of experience in the automotive industry. He has held leadership roles at various manufacturers and suppliers, most recently serving as Chief Commercial Officer at Marelli.

In his new role at Forvia Hella, Molla will oversee the strategic development of the lighting business, focusing on market requirements and technological innovation.

Dr.-Ing. Wolfgang Ziebart, Chairman of the Shareholder Committee, said, “With Juan Manuel Molla, we are gaining a highly experienced leader who brings strategic foresight, many years of industry experience, and a deep understanding of the needs of our customers as well as of international markets to the company. We are therefore very pleased to welcome Juan Manuel Molla to Forvia Hella and are confident that he will successfully continue – and further accelerate – the strategic development of the Lighting business in a dynamic and challenging market environment.”

Juan Manuel Molla stated, “I am very grateful for the trust placed in me. The automotive industry is undergoing profound transformation – which will bring changes, but above all great opportunities for the future. Our goal is therefore to respond to new market requirements with agility and flexibility, to consistently strengthen our competitiveness, and to drive the development of lighting innovations that are technologically pioneering and yet affordable. The greatest asset of Forvia Hella’s Lighting business is the expertise of our colleagues worldwide. I look forward to working with them to tackle these tasks and to shape the future of the Business Group Lighting together.”

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