Meanwhile, it is offering a complete system solution, comprising the axle, electric motor and transmission parts to deal with the expanding requirements from the electric-vehicle segment. This could help the company increase its supply of content per EV compared with the conventional car.
Typically, in the developed world, Schaeffler is supplying €100 worth of content per vehicle powered by conventional fuels, while in India is it around €30-40. It expects content per vehicle in the EV segment to expand fourfold by 2030.  

However, according to the company’s estimate, all the three technologies (EV, hybrid and conventional) to drive cars would remain relevant in the long term, and it could potentially increase the content it supplies per vehicle in all these segments. 

In the Indian market, the stricter emission rules could help Schaeffler India expand its revenue opportunity. Shifting to BS-VI standards is expected to increase the cost of petrol and diesel vehicles by ₹30,000-40,000 and ₹100,000-150,000, respectively. This gives an idea about the market opportunity it offers.

Of this increase in cost, the potential revenue opportunity for the company is three-fourths in case of petrol and one-fourth in diesel.
Vehicle makers are reducing the size of engines to lower emission. The lower engine size means the vehicle will require extra bearing to bring down vibration. Also, the rising share of automatic transmission augers well for the company’s revenue growth. In India, the share of automatic vehicles is just around 5%, but is expected to reach 15% by 2022.