ASK Automotive Limited two-wheeler braking systems capacity expansion

ASK Automotive Limited has approved a major manufacturing expansion to strengthen its position in the two-wheeler braking systems market. The decision focuses on increasing production capacity for brake shoes and disc brake pads to meet growing demand across India’s two-wheeler segment.
The company’s Board of Directors has sanctioned the establishment of two new manufacturing plants in Rajasthan. These facilities will operate from leased premises and will be dedicated exclusively to advanced braking components used in two-wheelers, reinforcing ASK Automotive Limited’s core product portfolio.
Capacity addition and commissioning timeline
The proposed expansion will add 6 crore pieces per annum to the company’s existing capacity of 26 crore pieces. This represents a 23 percent increase in total production capability for brake shoes and disc brake pads, marking one of the company’s most significant capacity additions to date.
The new Rajasthan plants are expected to be commissioned in the first quarter of the 2026–27 financial year. ASK Automotive Limited has planned an investment of approximately ₹35 crore for the project, covering infrastructure, equipment, and related setup costs.
Utilisation levels and demand drivers
ASK Automotive Limited is currently operating at around 90 percent capacity utilisation across its braking systems production lines. The high utilisation level reflects sustained demand from two-wheeler manufacturers and limited headroom within existing facilities.
The company attributed the expansion decision to increased market demand supported by GST 2.0 reforms. These reforms have improved compliance and transparency in the automotive supply chain, strengthening demand fundamentals for organised manufacturers of braking systems.
Funding strategy and financial approach
The entire capacity expansion will be funded through internal accruals. ASK Automotive Limited has confirmed that no external debt or equity will be raised for this project, highlighting strong cash generation and a disciplined capital allocation strategy.
By relying on internal resources, the company aims to maintain balance sheet stability while supporting long-term growth in the two-wheeler braking systems segment, which remains one of the most volume-driven areas of the Indian automotive market.
Regulatory disclosure and stock exchange details
The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also follows the framework outlined in the SEBI Circular dated July 13, 2023.
ASK Automotive Limited communicated the development to both the Bombay Stock Exchange and the National Stock Exchange of India. The company is listed under scrip code 544022 on BSE and trades under the symbol ASKAUTOLTD on NSE, with ISIN INE491J01022.
ASK Automotive Limited continues to focus on manufacturing advanced braking systems for automotive applications, with a strategic emphasis on the two-wheeler segment, which remains central to its growth and capacity planning strategy.