- Divgi TorqTransfer Systems secured export and transfer case opportunities across multiple Mahindra and Tata Motors programs.
- EV transmission volumes are expected to rise significantly with new launches scheduled from July 2026.
India-based Divgi TorqTransfer Systems has outlined several business developments across its export, drivetrain, transmission, and electrification programs during a recent investor update. The company reported progress in its international business pipeline, new contract wins, expanding relationships with major automotive manufacturers, and additional growth opportunities in both conventional and electric vehicle segments. The update also highlighted plans to strengthen its global footprint through overseas expansion initiatives while supporting future vehicle programs across multiple markets.
Indonesia Export Program Expands Across Two OEMs
The company's export program for Indonesia now includes both the Mahindra Scorpio pickup and the Tata Motors Yodha pickup. Combined program volumes have been confirmed at approximately 70,000 units, with the allocation split equally between the two vehicle manufacturers. Divgi stated that the start of production remains on schedule for FY 2027 ending in March. The program represents a significant export opportunity and further strengthens the company's position in supplying drivetrain technologies for international pickup vehicle applications.
New Transfer Case Programs and Technology Development
Divgi has secured a four-wheel-drive transfer case contract for the Tata Sierra, adding another important vehicle platform to its portfolio. The company has also completed development of a next-generation Torque-on-Demand transfer case integrated with Mahindra's M-Lock technology. Discussions are currently underway regarding deployment of this system in future production vehicles. In addition, Mahindra has requested support from Divgi for transfer case supply requirements associated with its global pickup truck program operating from the South Africa facility.
Key Program and Volume Highlights
Major programs and opportunities highlighted by the company are summarized below.
| Business Area | Update |
|---|---|
| Indonesia Export Program | Approximately 70,000 units across Mahindra Scorpio and Tata Yodha pickups |
| Transfer Case Business | Contract secured for Tata Sierra and next-generation Torque-on-Demand system developed |
| EV Transmission Program | Production approval received for 90-120 kW transmission system |
| Global Expansion | US subsidiary approved with INR 30 million investment |
EV Transmission Business Gains Momentum
The company has received Production Part Approval from Tata Motors for its 90-120 kW electric vehicle transmission system. Commercial deployment is scheduled to begin by July 2026 and is expected to support multiple vehicle platforms including the Nexon, Curvv, higher trims of the Punch, and the front axle application of the Harrier. According to the company, transmission volumes from this business are expected to nearly double during FY 2027, reflecting growing demand for electric powertrain solutions and increasing vehicle electrification activity.
Emerging Opportunities in New Vehicle Segments
Beyond passenger vehicles, Divgi is actively expanding into additional mobility segments. Prototype EV transmissions for three-wheeler applications have already been submitted to two startup customers for evaluation. The company is also pursuing opportunities in manual transmission systems, with ongoing negotiations involving an Indian OEM for a light-to-medium truck program. Another high-volume opportunity ranging from 60,000 to 100,000 units annually remains under consideration and is dependent on a future outsourcing decision by the customer.
Automatic Transmission Development and Overseas Expansion
In the automatic transmission segment, Divgi expects a proof-of-concept milestone on an Indian OEM platform within the next quarter. The company is simultaneously preparing for international expansion after its board approved the incorporation of a subsidiary in the United States. The approved initial investment for the new entity stands at INR 30 million. This move is expected to support future business development efforts, customer engagement, and strategic growth initiatives in overseas markets while strengthening the company's global operating presence.
Frequently Asked Questions
What is the significance of Divgi TorqTransfer Systems' Indonesia export program?
The Indonesia export program is a major growth initiative for Divgi TorqTransfer Systems, covering both the Mahindra Scorpio pickup and Tata Motors Yodha pickup. The program has confirmed volumes of around 70,000 units, divided equally between the two OEMs, with production targeted for FY 2027. The project strengthens the company's export portfolio, expands its international presence, and demonstrates increasing demand for its drivetrain technologies in overseas pickup truck markets.
Which electric vehicle programs will use Divgi's approved EV transmission system?
Divgi has received Production Part Approval from Tata Motors for its 90-120 kW EV transmission system. The technology is scheduled for launch by July 2026 and will be used in the Tata Nexon, Curvv, higher variants of the Punch, and the front axle application of the Harrier. The company expects these programs to contribute significantly to business growth, with EV transmission volumes projected to nearly double during FY 2027.
What new business opportunities is Divgi pursuing beyond current programs?
Divgi is pursuing multiple growth opportunities across different vehicle segments and technologies. These include prototype EV transmissions for three-wheelers, manual transmission programs for commercial vehicles, a potential high-volume outsourcing opportunity, and automatic transmission development with an Indian OEM. The company is also expanding internationally through a newly approved US subsidiary and supporting global pickup truck programs linked to Mahindra's South Africa operations.
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