- Tenneco will establish a new factory in Western India to support future production growth.
- The company plans to add 2.1 million units of annual capacity through an INR 690 million investment.
Tenneco Clean Air India Limited announced on May 28 that the board of directors of its material subsidiary, Tenneco Automotive India Private Limited, has approved a proposal to expand manufacturing capacity through the establishment of a new factory in Western India. The initiative is intended to support future production requirements and strengthen the company’s manufacturing footprint in the region.
Currently, the company operates with an annual production capacity of 19.69 million units of front struts and rear shock absorbers across its manufacturing facilities. To meet anticipated demand and support long-term growth objectives, Tenneco plans to increase its annual production capacity by an additional 2.1 million units over the next two financial years, FY 2026–27 and FY 2027–28, ending March 31.
Capacity Expansion Plan Overview
The capacity addition will be implemented in a phased manner across the two financial years. The planned expansion is expected to enhance the company’s ability to manufacture suspension-related components while maintaining operational efficiency. The new facility in Western India will play a central role in accommodating the increased production volumes.
Planned Investment and Capacity Addition
The company has earmarked INR 690 million for the expansion project. According to the announcement, the investment will be financed entirely through internal accruals, reflecting the company’s intention to fund growth using existing financial resources rather than external borrowing.
Tenneco Capacity Expansion Details
| Parameter | Details |
|---|---|
| Current Annual Capacity | 19.69 Million Units |
| Additional Capacity Planned | 2.1 Million Units |
| Implementation Period | FY 2026–27 to FY 2027–28 |
| Investment Amount | INR 690 Million |
| Funding Source | Internal Accruals |
| Project Location | Western India |
The expansion underscores Tenneco’s commitment to strengthening its manufacturing capabilities and supporting future market requirements through targeted investments in production infrastructure. Upon completion, the additional capacity is expected to further enhance the company’s output of front struts and rear shock absorbers across its operations.
Frequently Asked Questions
Why is Tenneco setting up a new factory in Western India?
Tenneco is establishing a new factory in Western India as part of its strategy to expand production capacity and support future demand for automotive suspension components. The company currently manufactures front struts and rear shock absorbers across its facilities and plans to increase overall output through phased investments. The new facility will help accommodate additional production requirements while strengthening manufacturing capabilities and supporting long-term operational growth objectives in the Indian market.
How much capacity and investment are involved in the expansion project?
Tenneco plans to add 2.1 million units of annual production capacity over FY 2026–27 and FY 2027–28. The company currently has a production capacity of 19.69 million units annually and intends to expand this through a phased implementation plan. The total investment for the project is INR 690 million, which will be funded through internal accruals. This approach enables the company to finance the expansion using its existing financial resources while enhancing manufacturing output.
Top of Form
Bottom of Form
Click above to visit the official source.