Forvia, one of the world’s largest automotive technology suppliers, is undertaking a major strategic push into the Indian market, setting an ambitious target to more than double its local revenue to over €1 billion (approximately Rs 10,000 crore) within the next five years. This massive projected growth, up from the current product sales of over €400 million, is being fueled by a committed investment of approximately Rs 1,000 crore focused on local manufacturing and advanced technology.
The aggressive strategy reflects a profound reassessment of India’s role within the global supply chain, according to Martin Fischer, Forvia’s chief executive officer.
“I looked at our book of business, I thought it’s not quite representative of what the Indian market is today and what it offers also in terms of growth opportunities,” said Fischer, who joined the group in March.
The numbers provide perspective for Fischer’s reorganization efforts in India. Forvia ended 2024 with a turnover of €26.97 billion, which translates to about Rs 2,69,700 crore, and the group is guiding for 2025 sales between €26.3 billion and €27.5 billion, or roughly Rs 2,63,000 crore to Rs 2,75,000 crore. In India, Forvia’s current annual product sales are around €400 million, equivalent to just about Rs 4,000 crore, despite the country being one of the fastest-growing automotive markets in the world. In absolute terms, India’s share of total revenues translates to a mere 1.5%.
This has also led Forvia to move away from its traditional role in India, which primarily centered on providing engineering and shared services. The new focus is transforming the country into a “real parts business force,” where products are engineered, sourced, and supplied locally to Indian customers.
Focused Investments Underpin Growth
The Rs 1,000 crore investment plan (initially structured through 2030) is being deployed across Forvia’s core business segments to enforce its presence in India.
The largest allocation targets the rapidly growing electronics segment, which currently generates just over €100 million in turnover and is targeted to grow four times over the next five years, aiming for more than €400 million. To support this rapid expansion, the company will allocate approximately Rs 800 crore toward installing new capacities. “So that will go in the direction of around Rs 800 crores we put in electronics,” remarked the top executive on his first visit to India after taking over the new job.
Secondly, in the seating business, the company plans to launch a new facility dedicated to manufacturing complete seats. The goal is to grow this segment five times in five years, pushing revenue past €150 million from the current base of approximately €30 million.
Likewise, clean mobility (exhaust systems), which is already a leading segment for the company in India, will also see enforcement, including the construction of a new plant in the northern region to be closer to customers. The plan is to double the turnover from its current €100 million plus to over €200 million.
Furthermore, Forvia is investing in a state-of-the-art lighting plant specifically for passenger cars, which will offer a complete range of solutions sourced from India. Additionally, they are extending a plant for specialized lighting applications, including those for trucks, farm machinery, and aftermarket solutions.
Decision Freedom
Fischer stressed that achieving these targets requires a shift in management philosophy, emphasizing decentralization. This strategy grants local teams, such as the seating and lighting business units in India, the “decision freedom” and empowerment necessary to act as the core of the company’s entrepreneurial efforts.
This local focus is deemed critical for managing the current global environment, characterized by volatility and risks like tariffs, and accommodating differing technical development speeds across regions.
Crucially, the company is adopting a mindset of “frugal engineering” to successfully penetrate the price-sensitive Indian market. Instead of pushing standard, premium European products, Forvia will create targeted affordability-based solutions that align with the local budget and demand.
“I could almost place a bet that when we go through that empowerment way and say we let loose the Indian team that we are going to exceed the expectations,” Fischer stated.