For US-based auto component maker Tenneco, India has become its fastest-growing and most profitable region globally, with the company expecting a double-digit growth through 2028 supported by new technologies, exports and regulatory-driven demand.

“Tenneco India is the fastest-growing mega region for Tenneco Global Group,” Arvind Chandra, CEO of Tenneco India, told ETAuto. “We are the fastest-growing region if you compare us to Europe, US or China.”

He added that India also benefits from high localisation levels, with around 90 per cent localisation across key product categories. The company recently announced a new plant in North India for its clean air business to support passenger vehicles, commercial vehicles and off-highway applications.

For FY27, the company has earmarked ₹140 crore capital expenditure, split between the North India clean air facility and a suspension systems plant in western India.

The company reported its highest-ever annual performance in FY26, with revenue growth of over 12 per cent and EBITDA margins of 18.8 per cent. Its lifetime order book stood at ₹12,400 crore.

According to Chandra, India is also becoming an attractive manufacturing and export base due to China de-risking, currency movements and technology alignment with global standards.

“People don’t want to put more business in China,” he said, adding that technology parity between BS6 and Euro 6 also enables exports from India to overseas markets.

Suspension market share crosses 52%

Tenneco’s suspension business has also gained market share in India, driven by demand for its DaVinci suspension technology.

The company said its passenger vehicle suspension market share has risen from the 30 per cent range before Covid to more than 52 per cent currently.

“Today we are in the 50s, around 52 per cent,” Chandra said. “That means one out of two passenger vehicles on the road will have a Tenneco shock absorber.”

He added that demand for the company’s suspension products currently exceeds available capacity.

“The demand has been so overwhelming that we have to push some of them back,” he said.

The company has also entered the supplier network of Maruti Suzuki, India’s largest passenger vehicle maker, after being absent from the carmaker’s supply chain for decades.

“Starting 2028, we will have entered the supplier panel of the largest passenger vehicle OEM in India,” Chandra said.

CAFE norms & BS7 offer ₹1,300 crore opportunity

Chandra said upcoming emission regulations, including CAFE norms and Bharat Stage 7 (BS7), present a market of up to ₹1,300 crore, as tightening standards increase content per vehicle.

“Between the CAFE norms for CO2 and the BS7 norms that are going to be coming in, that gives us an incremental addressable market of up to ₹1,300 crore which we can target,” he said.

CAFE norms are expected to take effect from 2027, while BS7 regulations could be implemented between 2029 and 2030. Chandra said the company’s clean air business stands to benefit from stricter emission standards in both domestic and export markets.

Tenneco recently completed a proof of concept for Euro 7 emission systems with a European truck manufacturer, which could position it for future export opportunities.

According to Chandra, even if domestic implementation timelines shift, export ambitions of vehicle manufacturers may continue to drive adoption of stricter standards.

“If they want to export, then they have to sell vehicles that are already CAFE compliant, Temp 5 compliant or BS7 compliant,” he said.