Tenneco Sees India as Key Growth and Export Hub Amid Global Challenges

India is becoming a major growth and export center for Tenneco, a US-based auto component manufacturer. The company is increasing its focus on India due to strong domestic demand, rising exports, and a push for localization. This comes as global supply chains face new disruptions and rising costs.

Key Highlights

• India contributes 5–7 percent to Tenneco's global revenue, with plans to reach 10 percent
• Tenneco India reported ₹3,512.2 crore value-added revenue in first nine months of FY26
• Export share expected to rise from 5–7 percent to nearly 20 percent in coming years
• Localisation in India operations stands at 90 percent with targets for new technologies
• Input costs rise due to global disruptions but domestic demand remains stable

India's Growing Contribution to Tenneco

Currently, India accounts for about 5–7% of Tenneco's global revenue. The company expects this share to rise to around 10% in the next few years. This growth is driven by India's faster expansion compared to other regions. In the first nine months of FY26, Tenneco India reported value-added revenue of ₹3,512.2 crore. This marks a 10% increase year-on-year. Profit after tax reached ₹437.6 crore, and the EBITDA margin stood at 19%.

Exports are a key focus for Tenneco India. The company expects export contribution to increase from the current 5–7% of sales to nearly 20% in the coming years. Both clean air and suspension businesses are expected to drive this growth. CEO Arvind Chandra noted that a weaker rupee is making Indian exports more competitive, boosting the export order book.

Localisation and Regulatory Support

Tenneco benefits from India's tightening emission regulations, which now align with global standards. This allows the company to use India as a manufacturing base for global markets. Recent trade agreements with the UK, EU, and US are expected to further support exports.

The company operates 12 plants in India, located in Pune, Chennai, Hosur, Bawal, and Sanand. It also has two R&D centers in the country. Tenneco's Indian operations cover passenger vehicles, commercial vehicles, and the aftermarket. Passenger vehicles contribute the largest share at 64%.

Localization is another strategic priority. Tenneco has achieved about 90% localization in its Indian operations. For new technologies, localization is still developing. The company aims to reach 85–90% localization for these technologies within two to three years. This effort is intended to reduce import dependence and improve cost competitiveness amid global supply uncertainties.

Cost Pressures and Market Outlook

Tenneco faces rising input costs due to global disruptions, including conflict in the Middle East. Steel prices have increased by about 7%, while gas and freight costs have also risen sharply, with freight up nearly 20%. Despite these challenges, demand in India remains stable. Automakers have not yet reduced production schedules, though there is uncertainty about future demand. The company expects more clarity in the coming weeks.