Automotive Strategy

Building customer trust

The Automotive Technology division pioneers in developing and manufacturing sustainable technological solutions for passenger cars and commercial vehicles, and tractors. Our innovative and customer‐first approach has resulted in Schaeffler India becoming the preferred technology partner for India’s biggest automotive OEMs and start‐ups alike. We offer a wide range of products, for critical applications across engine, chassis and transmission systems. Backed by our Schaeffler Group’s proven competencies on green mobility solutions, we are well placed to leverage the opportunities in India.

Key strengths and enablers

  • Diversified portfolio and presence across passenger, commercial vehicles and tractor segments, with deep customer connect
  • Precision products and solutions offering best-in-class enhanced performance
  • Access to best-in-class technology along with in-house R&D that allows seamless new product introduction suited to Indian markets
  • Innovative and quality products with longer service cycles
  • Just-in-time order fulfilment and strong customer support
  • Strong intellectual capital helps build upon customer trust

Market growth

Automotive components and systems are high precision products, which operate with high degree of accuracy. Since we understand the complexity and the fundamentals of the operating environment, we also excel in the manufacturing of these products and solutions.

A testament to our new product development capability is a recent success of our heavy-duty clutches with a leading commercial vehicle manufacturer. The results of our extensive product testing and simulation enabled in-direct commissioning of the product for heavy-duty dumpers. The trust placed by our customer showcases our pioneering spirit as we strive to lead ahead in customer centricity in offering enhanced technology experiences with reliable performance across products.

Operating environment

The external environment continued to remain uncertain and volatile. Post COVID-19, we saw a sharp rise in demand and the year started on a positive note. However, during the second wave, semiconductor shortage and supply chain disruptions weakened demand in the second half of the year.

Our response
We approached the situation with a high degree of resilience and focused customer engagements, thereby leveraging our agility as we continued to combat the crisis and rising to the top.

Although the demand outlook remained strong to moderate during the year, the headwinds came in the form of high commodity prices, especially steel, which is a major input cost for our products.

Our response
We deployed organisation-wide counter-measures to control costs through financial discipline. We worked closely with suppliers and customers to drive efficiency measures, such as commodity indexation and baseline referencing and Value Analysis and Value Engineering (VAVE) projects. This included localization, alternate sourcing and price and supplier negotiations.

The trend towards carbon-neutral mobility solutions will be a key enabler in meeting India’s commitment to bring its economy’s carbon intensity down to 45% and carbon emissions by 1 billion tonnes (BT) by 2030, at the COP26 this year.

Our response
We have solutions for electric and hybrid vehicles ready at a global level and are working on bringing those solutions to the Indian markets. We believe India, a cost-sensitive market, will have a gradual transition to cleaner fuels beginning with two and three wheelers and gradually shifting to mass mobility and PVs. We have products which are developed both locally and at the Group level to cater to this market. We continue our focus and strive to make current ICEs more efficient and greener as we transition towards a responsible tomorrow.

Reviewing 2021

  • The Automotive Technology division saw a strong revival in demand after a sluggish 2020, leading to 50% year-over-year growth in revenues. Our proactive stance in an uncertain business environment, and focus on customer centricity, and focus on innovation, helped in achieving the following outcomes:
    • Strengthened our position in the commercial vehicles segment through proactive planning and diversified portfolio. Our revenue from MHCVs grew during the year and we gained significant market share in our heavy duty clutch
    • Positive response to new products
    • Expansion in market share by providing well-researched, robust and timely solutions to our customers for implementation of new models
    • Led the shift towards gasoline powertrains, aiding us in increasing our Content per Vehicle (CPV) by 60% in gasoline engines since 2020
    • Sustained momentum in legacy products like tractor clutch segment
  • Key account management has been part of our global strategy and a contributing factor in our excellent customer engagement, application support to enhance overall customer experience and customer satisfaction. Our effective communication system between customers and account management teams specially warrants a mention in the highly volatile demand-supply conditions. We were able to extend seamless support for our customers despite the volume fluctuations seen throughout the year
  • We are working on building strong relations with new mobility players in the automotive sector. These customers demand agility, quick resolution, and out-of-the-box solutions. We leverage our experience, expertise and strong R&D competencies to develop customised solutions for this segment
  • We introduced new transmission system components in the passenger car segment by leveraging our market insights. The key USP of the components is to reduce friction and increase performance. We have also introduced some customised designs, which have won us accolades from our customers
  • We conducted multiple collaborative engagement platforms to understand the customer’s technology roadmap and plan our solutions and offerings
  • We worked in partnership with our customers to manage volatility in external environment through faster approval and better planning, which strengthened our customer connect

A greener future for generations to come

People’s demand for mobility is on the rise worldwide. At the same time, cutting emissions is imperative. Providing a comprehensive, modular kit of drivetrain technologies, Schaeffler creates the basis for sustainable, fit-for-the-future mobility solutions. And with its autonomous driving innovations, the company makes moving around even safer and more comfortable.

Schaeffler as a system partner: a one-stop shop for sustainable drivetrain solutions

Contribution to overall performance 39%
Contribution to revenue
Performance highlights 50%
Revenue growth over 2020
Customer satisfaction metrics 8.31
Schaeffler loyalty index

New products introduced in the market

Hysteresis controlled clutch cover for AMT application in heavy commercial vehicles (430mm dia) and (362mm dia) and passenger vehicles (190mm dia)

Static seal clutch master cylinder for passenger vehicles

Improved reliability aluminium concentric slave cylinder for passenger vehicles

Clutches for heavy commercial vehicles (430mm dia)

Variable expansion dampers ( VED) significantly improving the NVH parameters

Improved reliability clutch release bearings

Concentric slave cylinder bearing for hydraulic clutch release system for Passenger Vehicles

We were recognised by a leading passenger vehicle manufacturer in the country on our quick turnaround to support them in resolving the NVH issues for timely launch of their product. Strong collaboration of our engineering teams with the customer enabled us to identify the problem areas and offer appropriate design solutions to ramp up our supplies.

While the global economies were still recovering from the woes of the pandemic, we demonstrated remarkable resilience and resolve to grow 2.5x the market results. We were tested on multiple fronts - frequently changing regulatory restrictions, supply chain disruptions, volatility in demand, and commodity price inflations, to name a few. Our unwavering customer focus and diverse product portfolio held us in good stead in navigating this challenging environment. Along with these measures, we also activated strong counter-measures to control our cost and customer focus that yielded the right results.

Throughout the year, the key focus was to deliver on customer needs, strengthen and deepen our customer connect. We continued our engagement with them, leveraging virtual platforms to conduct technology seminars, addressing specific requirements. With our teams’ constant efforts, we have delivered not only on our commitments in terms of quality, innovation and on-time delivery, but also created several successes in troubleshooting technical issues.

Having accomplished a series of customer excellence projects, we are positive about forging stronger customer ties in the coming years. Globally, our future-ready products have charted the road towards greener mobility solutions. We are gearing up for a sustainable future, while continuing to strive towards our vision of pioneering motion.

Mr. Sanjeev Saxena
President- Automotive Technologies

Our strategic focus

Engine and transmission solutions

Enhanced bearing technology focus

E-mobility solutions

R&D focus

Mechatronics competency