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Auto component manufacturer Uno Minda is set to make significant investments in capacity expansion and new technology capabilities in FY27 as it looks to increase value addition and market share in its existing businesses while expanding its presence in electric vehicles (EVs) and emerging mobility technologies.
In his address to shareholders in the company's FY26 Annual Report, Managing Director Ravi Mehra said Uno Minda will continue to pursue its dual growth strategy by strengthening its core businesses through higher value addition and market share gains while simultaneously scaling businesses linked to electrification, connected vehicles and vehicle premiumisation.
According to Mehra, FY27 will be the company's most ambitious manufacturing expansion year to date. Out of the 12 projects currently under execution, seven are expected to commence production or enter the ramp-up phase during the financial year.
High-Voltage EV Powertrain Plant in Pune
Uno Minda, through its subsidiary Uno Minda Auto Innovations, is setting up a greenfield high-voltage EV powertrain manufacturing facility at Khed City, Pune. The project involves an investment of approximately 423 crore, which will be deployed over three years. The first phase of the plant is expected to be commissioned in the second quarter of FY27.
The facility will manufacture high-voltage EV products, including Combined Charging Systems (CCS), e-Axles, Inverters and Electric Motors. The project is being developed with technology support from Inovance Automotive, which is expected to acquire a 30% stake upon receiving the necessary regulatory approvals.
Mehra described electrification as the company's biggest long-term growth opportunity, adding that Uno Minda aims to become a comprehensive partner for the entire EV drivetrain ecosystem rather than just a supplier of individual components. To support this strategy, the company has also established a dedicated Green Mobility business vertical covering EV systems, alternative-fuel products and four-wheeler EV powertrains.
Second EV Powertrain Facility in Maharashtra
Uno Minda has also announced a second passenger vehicle EV powertrain plant in Chhatrapati Sambhajinagar, Maharashtra, with an investment of 550 crore. The facility will manufacture Electric Drive Units and Dedicated Hybrid Transmissions, with commercial production targeted to begin in the second quarter of FY28.
Additionally, the company plans to invest ₹210 crore in a casting facility in the region to increase localisation of components for electric and hybrid powertrain systems.
Sunroof Business to Commence in FY27
Uno Minda is establishing a new sunroof manufacturing plant at Bawal, Haryana, with an investment of ₹62.5 crore. The facility is being developed under a technology licensing agreement with Japan's Aisin Corporation and is expected to begin operations in the fourth quarter of FY27.
The company said that besides its initial anchor customer, it has secured two additional orders, including one from a new customer. Uno Minda believes that sunroofs, sensors, Advanced Driver Assistance Systems (ADAS) and airbags will emerge as key growth drivers as premium vehicle features continue to penetrate the mass-market segment.
Alloy Wheel Capacity Expansion
The company is also setting up a new two-wheeler alloy wheel manufacturing plant at Bawal with an investment of around ₹200 crore. The facility will have an annual production capacity of approximately 1.5 million units and is expected to commence commercial production in the second quarter of FY27.
Uno Minda expects alloy wheel adoption to increase steadily as consumer demand shifts toward premium and feature-rich vehicles.
Focus on Smart Manufacturing and AI
Over the next three years, Uno Minda plans to expand its smart manufacturing programme across all its production facilities. The company has already launched Artificial Intelligence (AI)-based pilot projects at three plants covering machine vision quality inspection, predictive maintenance, production scheduling and real-time energy optimisation.
Mehra said these initiatives are not experimental but will form the foundation of the company's plant-by-plant digital transformation strategy.
Strong FY26 Performance Supports Expansion
The aggressive expansion plan follows a strong financial performance in FY26. Uno Minda reported a 17% increase in consolidated revenue to ₹19,658 crore, while EBITDA rose 20% to ₹2,251 crore, with an EBITDA margin of 11.5%. Profit attributable to shareholders grew 27% to ₹1,197 crore during the financial year.
The company expects healthy domestic automotive demand, rising EV adoption and continued government support for advanced manufacturing to drive growth in FY27. While commodity price volatility and changing global trade conditions remain potential risks, Uno Minda believes its diversified product portfolio, increasing localisation and strong relationships with vehicle manufacturers will help mitigate these challenges.
