Eaton India’s automotive division is firing on all cylinders. After doubling its revenues and tripling profits over the last five years, the component maker is now gearing up for another major leap: a targeted revenue growth of 60-70% over the next five years, with ambitions to outpace the broader auto component market in India.
This growth will be driven by a multi-pronged strategy– one that leans on agile product development, strong export momentum, next-gen technology integration, and a disciplined approach to capacity expansion.
“Over the last five years, our revenues went 2x, and our profit before tax margins grew 3x. Our goal now is to grow faster than the market, with a minimum growth of 60–70% in the next five years,” Shailendra Shukla, Managing Director, Vehicle Group & eMobility India, Eaton told Autocar Professional. “That’s the minimum. Our aspiration is closer to 2.5x.”
Export Ambition
Today, over 40% of Eaton India’s automotive business is export-led, with the company shipping components and systems to customers in the U.S., Europe, Japan, Southeast Asia, China, Australia, South America, and even Africa. That figure is set to increase further in the years ahead. “Export growth has significantly contributed to our performance. From 25% few years ago, it’s now over 40% of our revenue and climbing,” Shukla said.
“In terms of our presence across the globe, directly or indirectly we are touching all the automotive pockets and hubs.” The company is also engaging with several new OEMs, and expects its presence in both Europe and North America to strengthen further. “While these are existing markets for us, our reach is set to deepen significantly,” Shukla said.
While the company is not looking to shift away from domestic opportunities, the scale of global demand, coupled with India’s growing role as a trusted manufacturing hub, makes exports a strong growth lever. According to a NITI Aayog report, India’s automotive component production is expected to grow to $145 billion by 2030, with exports tripling from $20 billion to $60 billion.
In FY26, the domestic automotive component sector is expected to clock 7-9% revenue growth, mirroring last fiscal, driven by sustained demand momentum from two-wheelers and passenger vehicles segments, ratings agency Crisil said in a report. In 2024, India emerged as the third largest car market and the largest two-wheeler market in the world.
Despite this the country has a modest share (around 3%) in the global automotive component trade. “The potential to grow exports is enormous. It’s a bigger geography. More markets, more opportunities,” Shukla said. “We expect both exports and domestic sales to grow, but exports could grow faster.”
Capacity Expansion
To support this growth, Eaton India is investing in its manufacturing and engineering infrastructure. The company has earmarked 7-10% of its revenue annually for capex, covering new machinery, buildings, Industry 4.0 technologies, and localised product platforms. In its Ranjangaon plant, for instance, Eaton is deploying 16 new manufacturing lines, including one for localising the XY shifter–a critical transmission component.
Another plant is being equipped to localise valve actuation systems tailored to meet India’s evolving emissions and fuelefficiency regulations. “We’re investing in future growth. That includes machinery, building infrastructure, skilling our people, and new product lines,” Shukla said. “In fact, we invest today for the product that may roll out two years from now.”
Across its three key automotive facilities in India— Ranjangaon, Ahilyanagar and Nashik, capacity utilisation is already upwards of 90%, prompting the need for brownfield expansions. “We have space at our plants to cater to growth over the next 5-10 years… We’re optimizing vertical storage and also expanding footprint,” Shukla said.
Product Portfolio
Eaton India’s automotive business is spread across a diversified product range. It caters to passenger vehicles, commercial vehicles, off-highway and agricultural equipment. It specializes in creating, distributing, and optimizing power for all types of vehicles and propulsion systems.
The company’s current product lineup includes full-range transmissions for CVs, valve and valve actuation systems, aftermarket clutches, fuel emission control, flywheels, electric vehicle components and charging solutions, air flow solutions, central release bearings and more. In addition, the company is working on torque products and gearing solutions, aimed at bolstering its drivetrain and mobility offerings for new-age vehicles.
“We’re active in both internal combustion and e-mobility. In fact, our EV solutions–power connections, power protection–are being prioritized for deeper development,” Shukla said. While EVs still account for a smaller share of revenue, the company is rapidly expanding its electrified product portfolio and targeting India for global programs.
Customer-Centric Engineering
One of Eaton’s key differentiators lies in its deep customer integration. Its engineers collaborate with OEMs early in the development cycle, often co-developing tailor-made solutions. “Automotive sales cycles are long. You engage two years before you win a contract,” Shukla explained. “So, we’re always in active conversations with Indian and global OEMs–even where we don’t yet have a big footprint.”
The company is also betting on its global partnerships to win new mandates in India. For example, where Eaton already supplies a global OEM abroad, it becomes a natural choice when the OEM enters or expands in India. And while India is a highly competitive landscape, Eaton believes there’s room for growth for all, especially in a demand-rich market. “In most product segments, everyone is operating at full capacity. That tells you the opportunity is real, and the pie is growing.”
Joint Ventures, Acquisitions
Globally, Eaton has long pursued a JV-and-acquisition-led growth model, and India is no different. The company already has five joint ventures in the Asia–Pacific region in automotive alone–ranging from clutches and transmissions to valve actuation and electric drive systems. “We have JVs with Cummins, Shaanxi Fast Gear Co, Nittan Valve Co, and others in the region. This model helps us localize quicker and leverage partner strengths,” Shukla said.
On the M&A front, Eaton continues to evaluate inorganic growth opportunities, both in India and abroad. However, specifics were not disclosed. “Our strategy is clear: lead for growth, invest for growth, and execute for growth. And M&A is part of that roadmap,” he said.
Industry 4.0
Eaton has been ahead of the curve in deploying digital manufacturing tools across its India plants. Under its Digital Accelerator Program, every cell on the shop floor features a selection of Industry 4.0 components–ranging from augmented reality and simulation to robotics, digital work instructions, and real-time production performance monitoring.
“We deploy what’s relevant to each cell,” the executive said. “From Pick-to-Light to robotic arms to live dashboards, we’ve digitized across the value chain.” These tools not only drive efficiency, but also improve worker safety and support quality assurance.
In one example, Eaton replaced a visually fatiguing inspection job with a robotic system and digital gauge–leading to better outcomes and reskilling, not job losses. “Industry 4.0, if done right, doesn’t replace people. It upskills them,” Shukla emphasized. “There have been no layoffs. In fact, we’ve redeployed people to safer, higher-value tasks.”
The Culture of Execution
Eaton India emphasizes the importance of organizational culture–fostering agility, ownership, and future-readiness. The company’s India operations have benefitted from high localisation, leadership continuity, and a global mindset. “We are future-ready. Our teams are skilled, our processes are digital, and our vision is shared…We’re not chasing growth for growth’s sake–we’re building a sustainable business,” Shukla said. With strong export tailwinds and customer-centric engineering, Eaton’s India automotive arm remains key to its global strategy.