Caption: Matthias Eden, Head of Group and Brand Purchasing Metal Raw Material and Exhaust Systems, Volkswagen Group Michael Bäcker, Head of Group Procurement Metal, Volkswagen Group Dennis Grimm, Spokesman of the Executive Board Thyssenkrupp Steel Simon Stephan, Sales Automotive, Senior Vice President, Thyssenkrupp Steel.

Volkswagen Group and Thyssenkrupp Steel have signed a Memorandum of Understanding (MoU) for the planned supply to Volkswagen Group of low-carbon steel from Thyssenkrupp Steel’s future direct reduction plant.

This agreement the partners state underscores the joint commitment to sustainability and climate protection, marking a further milestone in their long-standing partnership.

The Thyssenkrupp Steel direct reduction plant is scheduled to be commissioned from 2027. It will operate with hydrogen and green electricity, which will significantly reduce its carbon footprint. At the start of the ramp-up phase, the plant will use natural gas as the reducing agent, before the process is switched successively to hydrogen. The resulting product – bluemint Steel – will be certified in accordance with recognised standards and can qualify for the LESS Label A if the hydrogen used in production is generated entirely from renewable sources. This classification, developed by the German Steel Association flanked by Germany’s Federal Ministry for Economic Affairs and Climate Action, provides a full picture of a steel product’s climate impacts and documents its almost emission-free production.

Dirk Grobe-Loheide, Member of the Board of Management of the Volkswagen Brand responsible for Procurement and Member of Volkswagen AG’s Extended Executive Committee said, “Decarbonising supply chains is a decisive factor for the Volkswagen Group on the road to carbon neutrality. We want to achieve this goal by 2050 at the latest, and using low-carbon steel is an important step in making supply chains at Volkswagen Group even more environmentally friendly going forward. This MoU with Thyssenkrupp is an important building block in our strategic focus on the use of low-carbon steel.”

Dennis Grimm, Spokesman of the Executive Board of Thyssenkrupp Steel states, “Signing this memorandum of understanding marks an important step on our path to decarbonising key industrial processes in Germany. Our long-standing partnership with Volkswagen Group demonstrates that, alongside our technical development work, we can also collaborate in making great strides toward a sustainable future.”

Volkswagen Group is expected to benefit significantly from this innovative process to avoid CO2 emissions because 15 to 20 percent of an electric vehicle’s emissions are accounted for by the steel used. Moreover, this decarbonisation concept allows the manufacture of the full product portfolio in accordance with the usual specifications and in premium quality. Supplies are scheduled to start in 2028 and will then be expanded step by step.

The collaboration between the two companies increases their focus on the electromobility. It covers economical lightweight solutions for highly stable vehicle structures and electrical steel for efficient electric drive systems. Steel is playing a key role in the mobility transition, not only as a material for generators and electric engines but also as the material of choice for the bodies and other structural components of electric vehicles. In the context of electromobility, steel is becoming an increasingly important material because more of it is needed in electric vehicles – due to their large battery units – than in combustion vehicles.

The partnership between Volkswagen Group and Thyssenkrupp Steel demonstrates how sustainable solutions can be created thanks to innovative technologies and strategic alliances. It is one of a series of initiatives by the Volkswagen Group to expand the use of green steel in production. In addition to the collaboration with Thyssenkrupp Steel, Volkswagen Group has been in partnership with Salzgitter since 2022. Volkswagen Group and Vulcan Green Steel recently signed a MoU in respect of long-term partnership. The Group also has a stake in Swedish green steel manufacturer H2 Green Steel via its subsidiary Scania.

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Tier 1 automotive supplier Lumax Auto Technologies, part of the DK Jain Group, has further strengthened its management team by onboarding Ambarish Kumar Gupta as the new Vice-President – Operations.

Gupta comes with over two decades of experience in the automotive industry, with senior roles across financial operations.

The industry executive has worked with the likes of Forvia Faurecia, Marelli, Brose, Magna Steyr, Infosys, L&T Technology Services, BlueBinaries Engineering & Solutions and PGUB Management Consulting, among others.

In his new role, he will be responsible for advancing futuristic automotive electronics, strengthening operations and making the company future-ready.

Gupta will also support Lumax Auto Technologies’ innovation, technology and operational excellence roadmap.

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The Indian automotive component sector is projected to expand by approximately 8-9 percent in FY2027, according to a report by CareEdge Ratings. The market size is forecasted to reach INR 10,681 billion in FY2027, rising from INR 9,835 billion in FY2026.

The anticipated expansion is supported by domestic vehicle manufacturing, higher component content per vehicle, aftermarket replacement demand and ongoing integration with international supply chains.

The report states that total vehicle production in India increased from 23 million units in FY2022 to 34.7 million units in FY2026. Original equipment manufacturers (OEMs) generated 67 percent of sector revenues in FY2026, while exports and the aftermarket accounted for 22 percent and 11 percent, respectively.

On the other hand, auto component exports grew from INR 987 billion in FY2021 to INR 2,122 billion in FY2026, with expectations to reach INR 2,300 billion in FY2027. Component imports increased from INR 1,024 billion in FY2021 to INR 2,243 billion in FY2026, and are projected to rise to INR 2,431 billion in FY2027 due to continued reliance on semiconductors, battery cells and electronic systems.

Engine parts represented the largest product category at 24 percent of the component mix in FY2026, followed by suspension and braking at 17 percent and drive transmission and steering at 14 percent. However, product value is gradually shifting toward electronics, software systems and electric vehicle architectures. Total electric vehicle registrations rose from 170,000 in FY2020 to 2.45 million in FY2026, increasing electric vehicle penetration from 0.71 percent to 8.28 percent.

Ranjan Sharma, Senior Director at CareEdge Ratings, said, "India's auto component industry has emerged as an increasingly important part of the global automotive supply chain, supported by its manufacturing competitiveness, engineering capabilities, and expanding domestic market. With the auto ancillary industry market size expected to surpass Rs 10.6 trillion in FY27, the sector is well positioned to capture a larger share of global sourcing opportunities. Continued progress in localisation of critical components and development of advanced manufacturing capabilities will be key to enhancing value addition and strengthening India's long-term position in the global automotive ecosystem."

The aggregate revenue of the top 50 listed auto ancillary companies in India is expected to increase from INR 4,325 billion in FY2026 to INR 4,714 billion in FY2027. Sector capital expenditure is projected to reach INR 282 billion in FY2027 to support automation, capacity expansion and technology upgrades. Operating margins are expected to remain stable, managed through contractual cost pass-through mechanisms with vehicle manufacturers.

Government policy initiatives continue to influence capacity creation. The PLI-Auto Scheme recorded cumulative investments of INR 443.26 billion against an incentive outlay of INR 259.38 billion by FY2026. The PLI-ACC scheme for battery cell manufacturing attracted INR 51.80 billion in investments as of 31 May 2026, against an outlay of INR 181 billion. Additional demand support stems from the PM E-DRIVE scheme and the PM e-Bus Sewa scheme.

Geopolitical issues, freight rate fluctuations, and trade policies remain factors for export performance. The US represents the largest export destination, taking approximately 26 percent of Indian auto component exports, valued at INR 552 billion in FY2026.

Arti Roy, Associate Director at CareEdge Ratings, added, "CareEdge Ratings expects the Indian auto ancillary industry to grow by around 8-9% in FY27, supported by healthy OEM demand across major segments, increasing component content per vehicle, resilient replacement demand, higher localisation, and expanding global sourcing opportunities. The industry's ongoing transition towards electronics-intensive and cleaner mobility platforms is creating new opportunities across EV-linked components, advanced electronics, powertrain technologies, and other high-value automotive systems. Profitability is expected to remain broadly stable, although returns from ongoing investments in new capacities and advanced technologies are likely to materialise gradually. Companies with diversified customer relationships and geographical reach, wider product portfolios, strong engineering capabilities, prudent capital allocation, and the ability to adapt to the evolving component value pool are expected to remain better positioned."

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BorgWarner has broadened its variable cam timing portfolio through two newly secured contracts in Europe and China, reinforcing its position in the hybrid and internal combustion engine sectors. One agreement extends production and raises output volumes for a premium European automaker’s V6 platform, while the other represents a competitive replacement for a Chinese original equipment manufacturer’s 1.5-litre turbocharged gasoline unit.

The technical foundation for both awards is the centre-bolt Cam Torque Actuated system, which departs from conventional oil-pressure-based designs. By streamlining internal lubrication channels, the architecture achieves quicker cam phase adjustment, more dependable locking mechanism engagement and lower lubricant consumption, all of which contribute to measurable gains in thermal efficiency across both electrified and conventional powertrains.

Production for the European V6 family, which serves premium and sports vehicle segments with power ratings spanning 260 to 375 kilowatts, is already active. The enhanced supply agreement, including the enlarged volume commitment and an extended production horizon, will become effective in January 2027, covering both hybrid and gasoline-only iterations of the engine.

The Chinese programme, slated to enter production in September 2026, involves a high-volume 1.5-liter turbocharged engine line that underpins numerous sport-utility and sedan models destined for the domestic market. This victory over the prior supplier was attributed to the system’s fuel-saving characteristics, combined with localised manufacturing operations and a more competitive overall cost structure.

Henk Vanthournout, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems, said, “These awards underline the long-term competitiveness of our VCT portfolio across both hybrid and combustion powertrains. They reflect the quality, reliability and cost competitiveness our customers continue to value in our VCT and timing drive solutions.”

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Bosch Ltd has reported 36.8 percent net profit decline to INR 7.049 billion in Q1FY27. It has attributed the performance to high base effect as it has come despite a revenue growth on the back of strong uptake from the automotive and power solutions category.

In its regulatory filing, Bosch has reported, the consolidated net profit in the corresponding quarter of the last fiscal was INR 11.153 billion. In Q1FY26, the company had recorded a total gain of Rs 5.56 billion on the sale of its video solutions, access and intrusion and communication systems business.

Its consolidated revenue from operations in Q1FY27 stood at INR 58.419 billion as against INR 47.886 billion in the same period last fiscal. Total expenses in the Q1FY27 period were higher at INR 51.258 billion as compared to INR 42.388 billion in the corresponding period in the last financial year.

Stating that the business performance of the company in the first quarter was driven by sustained demand across segments like passenger cars and commercial vehicles along with the increased sales in key product categories, Guruprasad Mudlapur, President, Bosch Group in India, and Managing Director, Bosch Limited, mentioned that the automotive sector in India is undergoing a structural shift towards safer, cleaner and personalised vehicles. Bosch, he added, is well-positioned to support this change by delivering high-value, future-ready solutions.
The product sales kitty of the company in Q1FY27 for the automotive segment saw an uptake of about 25.7 percent year-on-year. The power solutions business grew by 29 percent, also on the back of demand from the auto sector.

Image for representative purpose only. 

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