New ₹550 crore factory will supply future electric cars

The Essentials

• Uno Minda is building a new greenfield manufacturing plant in Chhatrapati Sambhajinagar to create four-wheeler electric passenger vehicle components.
• The project involves an estimated investment of roughly 550 Crore rupees and is expected to be operational by Q2 FY28.
• Local production of these advanced drive units means future Indian electric passenger vehicles will rely less on imported technology.

The Pulse

Uno Minda is setting up a new greenfield manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra, to produce high-voltage electric powertrain products for four-wheeler passenger vehicles. This step expands their manufacturing capacity to build systems like Electric Drive Units and Dedicated Hybrid Transmission systems. The expansion comes on the back of securing substantial new orders from a key anchor customer, ensuring immediate utility for the factory.

The facility marks the second dedicated powertrain plant established by the subsidiary Uno Minda Auto Innovations Private Limited in quick succession, following their ongoing setup in Khed City, Pune. While the Pune facility is slated to begin operations in H2 FY27, this new plant will be commissioned by Q2 FY28.

If you are wondering what types of vehicles will use these systems, they are designed to support a full spectrum of advanced powertrains, including battery electric vehicles, hybrid options, plug-in hybrids, and range-extended variants. The total estimated investment for this project stands at approximately 550 Crore rupees, which will be funded through a balanced mix of debt and equity over the next two years.

The Snapshot

The Big Picture

The push towards localised automotive components highlights a larger trend across the Indian subcontinent as manufacturers prepare for an electrified future. Competing players like Sona Comstar are already scaling up their domestic production of electric vehicle drivetrains to meet the needs of major car manufacturers. By localising high-voltage technologies rather than relying on international supply lines, local component makers are protecting themselves against global transit delays. This strategy ensures that Indian car manufacturers can sustain a steady assembly line as consumer demand for hybrid and fully electric passenger vehicles continues to climb steadily.

The India Prospective

For car buyers across the country, this domestic manufacturing push accelerates the choice of advanced powertrains available locally. The focus on progressive localisation covers battery electric vehicles, hybrids, plug-in hybrids, and range-extended variants. This development directly supports the structural shift towards sustainable mobility in India, ensuring that vehicle manufacturers can build passenger cars equipped with high-voltage technologies without depending heavily on imported systems to deliver these options.

The Inside Intel

While many recognise Uno Minda as a domestic brand, the organisation has been operating since 1958 and has quietly built a massive global footprint. The company now runs seventy-eight manufacturing facilities across countries including Indonesia, Vietnam, Germany, Spain, and Mexico. Combined with thirty-seven R&D and engineering centres operating internationally from Japan to Taiwan, this local player has transformed into a global component powerhouse over its six decades of operation.

The UDHQ. Take

Unbox Daily HQ. advises prospective car buyers to track this corporate expansion as it directly shapes the options arriving in showrooms by 2028. For anyone planning a future transition to clean mobility, this heavy infrastructure layout validates that local vehicle manufacturing is maturing. The major draw here is the extensive domestic assembly of complex high-voltage drive units, meaning your next vehicle will benefit from components built closer to home.

Best for: prospective electric car buyers who want to monitor the growth of localised automotive supply lines before making a purchase

Who Is This For: Perfect for 28 to 55 working professionals in metropolitan cities who track automotive trends to plan their next vehicle upgrade

The Checkout

Uno Minda – India Page

The Source

Uno Minda India | NSE Limited | BSE Limited