Tenneco India Charts Aggressive Growth Path with Expansion and Acquisitions
Tenneco Clean Air India Ltd (TCAIL), the India-listed subsidiary of the US-based $17-billion Tier-1 auto parts supplier Tenneco Group, is refining its growth strategy to leverage India's favorable automotive cycle. The company is focused on sustaining double-digit growth in the coming years through a combination of organic expansion and inorganic opportunities.
Capacity Expansion to Meet Rising Demand
On the manufacturing front, TCAIL is evaluating the addition of 2–3 new factories as some of its existing plants approach full capacity. These proposed units are likely to be established in western and southern India, strategically located near passenger vehicle (PV) original equipment manufacturer (OEM) hubs. This expansion is driven by strong growth visibility in the PV segment and increasing demand for advanced suspension systems.
Inorganic Growth Through Acquisitions
Alongside organic expansion, Tenneco is actively exploring acquisitions to deepen its presence in adjacent segments and new technologies. Arvind Chandra, CEO and Whole-Time Director of TCAIL, stated in an interaction with TOI at the Hosur facility, "As a zero-debt company with robust cash flows, we have the flexibility to raise $400–500 million for acquisitions." He added, "We are looking at opportunities in areas such as transmission and braking, as well as technology-led businesses. The idea is to integrate these companies, improve margins through our operational frameworks, and leverage our OEM relationships to scale them."
India as a Key Growth Engine
Following its listing on Indian bourses last year, TCAIL—with annual revenues of about ₹5,000 crore, 12 factories, and two R&D centres—is positioning India as a critical growth engine. Its portfolio in the country is balanced between engine and chassis components, with a strong presence in suspension systems. The company holds approximately a 52% market share in shock absorbers and struts.
Chandra highlighted, "One in two passenger vehicles in India runs on shock absorbers produced by Tenneco. Going forward, we see strong potential to double volumes by 2030 and increase our market share to 60–65%, driven by our advanced suspension technologies, DaVinci DCX and CVSA (Control Valve Semi-Active)."
Investment in R&D and Future Outlook
The company is also investing in a new R&D facility in Hosur, with an investment of a couple of million dollars, to strengthen its engineering capabilities. Currently, TCAIL has around 150 R&D personnel, a number expected to grow to at least 200 over the next few years. Over the next five to seven years, the company's growth in India will be driven by a mix of organic and inorganic initiatives, solidifying its position in the automotive parts market.
