Global automakers are increasingly looking at India as a key sourcing hub for auto components, according to Nathan Bowen, Global Executive Vice President and Group President at Tenneco, one of the world’s largest auto parts manufacturers.
Bowen highlighted a growing shift in global supply chain strategies, with companies seeking resilience through diversification beyond China. “China has been a critical hub for years and continues to be important to our business,” Bowen said. “But customers are increasingly looking for alternatives to provide resilience to the overall global supply chain. We have a lot of customers coming to us and asking for products from India to be shipped to the rest of the world — for two reasons: great technology and cost competitiveness.” – ET
Bowen, who heads Tenneco’s Clean Air, Powertrain, and Champion Ignition verticals, said India has become a central point of discussion in nearly half of his customer meetings. “India is definitely emerging as a preferred alternative, and in some cases, a better choice for global customers.”
India has been Tenneco’s fastest-growing market in recent years, with net sales reaching $18 billion in 2021. Apart from serving the domestic automotive sector, Tenneco also leverages its Indian manufacturing facilities to export components to North America and Europe.
The company plans to further expand its export operations from India, which now ranks among the top five revenue contributors globally—an impressive leap from the ninth position just five years ago.
“We are really focused on ‘Make-in-India’ for India,” Bowen noted, “but now we are developing ‘Make-in-India’ for the world as well. There are clear cost advantages in this region, making India a great alternative — or even a preferred destination — for producing and exporting cost-effective, high-quality auto parts.”
Bowen also addressed the ongoing global trade discussions, including the potential for reciprocal tariffs proposed by the US. “It’s very dynamic… we have to see how that plays out in terms of long-term impacts. But we will adapt and continue to take a long-term view,” he said. “That’s where Tenneco has a unique advantage — our geographically diverse footprint allows us to weather market challenges, tariff-related or otherwise.”
Looking ahead, Tenneco remains optimistic about India’s economic trajectory and its implications for the automotive sector. “India is a big market for us. The economy today is about $4 trillion, and we expect it to grow closer to $10 trillion by the end of the decade,” Bowen said. “That’s more than 2X growth, and we aim to significantly outpace that — especially with increasing regulatory requirements in the auto industry. We see significant growth in this region and will continue to invest accordingly.”
As global OEMs increasingly recalibrate their sourcing strategies, India’s role in the automotive value chain is poised for a dramatic up shift — with Tenneco placing its bets firmly on the country’s potential.
