Craftsman Automation capacity expansion targets alloy wheel, powertrain growth

On January 29, 2026, Craftsman Automation announced a strategic capacity expansion across its alloy wheel and powertrain segments, aligning operations with improving demand conditions and long-term technology shifts. The move reflects the company’s focus on strengthening utilisation levels while positioning itself for higher-value automotive programs.

Alloy wheel capacity ramp-up and utilisation targets

The alloy wheel business is targeting utilisation levels of 60–70% by Q3 FY 2027, which ends in December, compared with utilisation below 50% at present. Management attributed the expected improvement to progress in BIS approvals, new model development, and customer validation cycles. A new alloy wheel plant commissioned in Q3 had initially reported losses due to validation-related expenses. As customer approvals progress, production volumes are now increasing, helping absorb fixed costs and improve operating efficiency. The ramp-up is expected to support upcoming OEM launches and replacement demand.

Powertrain expansion aligned with heavy-duty trends

The company is adding around 5–10% powertrain capacity starting January 2026 to capitalise on the recovery in commercial vehicle and tractor demand. This expansion is supported by rising horsepower requirements and the gradual shift toward heavier-duty applications.

Shift toward higher horsepower engines and gearboxes

Management highlighted that OEMs are increasingly moving toward 400+ horsepower engines paired with 700–800 Nm gearboxes, in line with global heavy-duty standards. This transition is expected to drive stronger growth opportunities for suppliers capable of meeting tighter performance and durability requirements.

Supplier consolidation and technology-led investments

Craftsman stated that the capacity expansion will help address large orders from multinational customers as OEMs consolidate suppliers amid technological shifts and stricter emission norms. Over the past three years, the company has invested steadily in automation and advanced equipment, enabling it to target high-technology products while remaining price competitive in a changing automotive landscape.