MAHLE targets India for AI-cabin climate and rare earth free EV motor launches

German automotive supplier MAHLE is positioning India as a lead market for new automotive technologies. The company is considering India for the first launch of its AI-based cabin climate system. MAHLE also sees strong potential for its rare-earth-free electric motor in India, though it has not confirmed a launch date for either technology.

Key Highlights

• MAHLE considers India for the first launch of an AI-based cabin climate system.
• India generated €455 million in sales for MAHLE in 2025 with over 10 percent revenue growth.
• MAHLE developed a thermal-management system for Mahindra BE 6 and XEV 9e electric vehicles.
• MAHLE's rare-earth-free MCT electric motor targets heavy commercial vehicles with 370 kW peak output.
• India approved a Rs 7,280-crore scheme for rare-earth magnet manufacturing in November 2025.

India’s Expanding Role in MAHLE’s Strategy

Traditionally, MAHLE introduced new technologies in China, Europe, or the United States before adapting them for India. This approach is changing. According to Arnd Franz, Chairman and CEO of MAHLE, some technologies are now being launched in India before other global markets. Roger Busch, Head of Sales and Technology, confirmed that pilot applications are being introduced globally in India.

India’s importance to MAHLE is growing. The company operates 11 production locations and one technology center and employs 4,622 people in the country. In 2025, India generated €455 million in sales, making it MAHLE’s fastest-growing region. Revenue increased by more than 10%, or over 20% after adjusting for currency movements. India’s share of MAHLE’s group sales rose to 4% in 2025 from 3% in 2024.

Mahindra EV Programme and Localised Innovation

MAHLE’s involvement in Mahindra BE 6 and Mahindra XEV 9e electric vehicles highlights India’s growing role in product development. The company developed a thermal-management system for these models, designed to deliver rapid cabin cooling and maintain energy efficiency in challenging climates. According to Busch, Mahindra’s electric vehicles achieve the fastest cabin cooling with high efficiency, even in India’s northern desert regions.

The Intelligent Thermal Management System, developed for Mahindra’s first dedicated EV platform, manages cabin and battery temperatures and controls airflow. MAHLE claims this system reduces electric-compressor power consumption by 15-20% compared to reference vehicles without affecting cabin comfort. Key components are produced locally, reflecting a shift toward full-system supply and development tailored to local requirements.

Busch noted that Indian customers increasingly ask MAHLE to take responsibility for complete systems rather than just components. This change allows MAHLE to design products around local priorities such as high temperatures, energy efficiency, and cost.

AI Cabin Climate and Rare-Earth-Free Motor

MAHLE has identified India as a candidate for the first launch of its AI-controlled cabin climate system. The system, demonstrated at IAA Mobility 2025, learns individual occupant preferences and adjusts cabin temperature. It also features active air purification. The company has not named an Indian customer or set a production timeline.

MAHLE’s new MCT electric motor, designed for heavy commercial vehicles, does not use permanent magnets and avoids rare-earth elements. The motor can eliminate up to 3 kg of rare-earth magnets per vehicle compared to standard permanent-magnet synchronous motors. It is 10% lighter and more efficient under real-world conditions, delivering a peak output of 370 kW and over 900 Nm of torque at 3,900 rpm, with around 95% efficiency in the EU’s VECTO simulation cycle.

Industry Context and Supply Chain Developments

MAHLE supplies electric-drive systems for two- and three-wheelers, passenger cars, and commercial vehicles. The company sells about eight million electric drives and ancillary systems globally each year. More than 35 electrified vehicle platforms using MAHLE technology are scheduled to launch between 2026 and 2029.

Automakers and governments are seeking to reduce dependence on rare-earth supply chains. The International Energy Agency reports that China produced 91% of refined magnet rare earths and 94% of sintered permanent magnets globally. Export controls in 2025 caused supply issues for some automakers outside China.

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CarBike 360 Says

MAHLE’s strategic focus on India highlights the country’s growing importance in global automotive innovation. By introducing AI-driven cabin climate systems and rare-earth-free EV motors, the company is aligning with sustainability goals while addressing cost and efficiency challenges. This move not only strengthens MAHLE’s footprint but also supports India’s transition toward smarter, cleaner mobility solutions.