Uno Minda invests $147.5m in four plant

Indian automotive component supplier Uno Minda will invest approximately Rs14.15 billion ($147.5 million) across four new capacity expansion and consolidation projects. The investment spans the company's operations in two-wheeler alloy wheels, aluminium casting, moulding, and interior and exterior parts.

According to the company, the projects aim to strengthen its manufacturing footprint and boost capacities to meet rising demand from original equipment manufacturers. The announcement was reported by Just Auto.

New Hosur aluminium casting plant

One major project is a new greenfield aluminium casting plant in Hosur, Tamil Nadu. Uno Minda decided to build a new facility after using up all expansion space at its existing Hosur site.

The project requires an additional investment of Rs5.10 billion. It will increase the site's capacity from about 13,000 metric tonnes to a peak of 30,000 metric tonnes.

Construction will occur in phases over three years. Production from the first phase is scheduled to begin in the fourth quarter of the 2028 financial year, which runs from April 2027 to March 2028. The company plans to consolidate and move all operations from the current Hosur plant to the new facility by the first quarter of FY29.

The new plant will produce structural and general-application parts, including components for electric vehicles and powertrains. It will also manufacture nearly one million high-pressure die-cast alloy wheels for two-wheelers annually.

Alloy wheel capacity boost in North India

The second detailed project involves expanding two-wheeler alloy wheel capacity at the company's Kharkhoda plant in Haryana. Uno Minda's board has already approved this plan.

The expansion will add 3.3 million units of capacity. This includes transferring 2 million units of existing capacity from the company's Supa plant in Maharashtra to Kharkhoda.

This project is estimated to need an additional capital expenditure of Rs1.55 billion. Implementation is set to take two years, with initial production planned for the fourth quarter of FY28.

The company stated the Kharkhoda facility is specifically aimed at extending its presence in the two-wheeler alloy wheel market in North India.

The latest investment follows another recent capital approval by Uno Minda. In July, the company approved an investment of nearly Rs3.20 billion for a new greenfield plant producing passenger vehicle seating systems in Chhatrapati Sambhajinagar, Maharashtra. That project marks its entry into the four-wheeler seating business.

Uno Minda supplies parts for two-wheelers, four-wheelers, and commercial vehicles, supporting both combustion-engine and electric vehicle platforms. The company's latest capacity moves are a direct response to what it calls "surging demand" from leading OEMs.