German car-parts maker Mahle GmbH is reportedly exploring an initial public offering (IPO) for its Indian unit, joining other foreign companies looking to list in India's growing markets. The company is in early discussions with potential advisers regarding a share sale in Mumbai. Mahle is still determining which specific operations to include in the listing.
The potential IPO could raise as much as $400 million, with Mahle possibly targeting a valuation of approximately $1 billion. This move aligns with Mahle's broader strategy to significantly expand its presence in India, where it plans to invest over $30 million annually. The company aims to double its domestic business to $1 billion within the next five years, indicating India's increasing importance as a growth market.
Mahle views India as a key market for both sales and technological innovation, planning to introduce certain technologies there before other global markets. While electric mobility is a major focus, Mahle is investing in diverse technologies, including thermal management, electrification, fluid systems, and rare-earth-free electric motors, which are considered crucial for India's electrification strategy. The company is also exploring opportunities to increase exports from India due to improving manufacturing competitiveness.
Despite potential challenges like energy disruptions and rising costs, Mahle remains committed to its India strategy. The company has secured significant orders from American customers for products to be exported from India and has established a highly advanced development center in the country. Mahle's diverse customer portfolio, spanning passenger cars, commercial vehicles, and off-road sectors, along with its expansion into non-automotive applications, provides a stabilizing effect on its business.
Mahle's sales in India increased by over 10% to $455 million in 2025, and by more than 20% after adjusting for currency movements, contributing 4% to the group's revenue. The company anticipates India will be a primary driver of growth as it seeks to expand its portfolio across electrification, thermal management, and the aftermarket, with a goal of reaching nearly $1 billion in annual sales in India.
