Tenneco India IPO Fuels Growth Ambitions, Signals Manufacturing Shift

NEW YORK, NY – November 19, 2025

India's Rising Automotive Role

The listing of Tenneco Clean Air India Ltd. on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) marks a significant moment for the global automotive component industry and underscores India’s rapidly evolving position as a central hub for manufacturing and innovation. The initial public offering (IPO), finalized with shares debuting at a premium, not only unlocks capital for Tenneco’s Indian subsidiary but also signals broader confidence in the country’s economic trajectory and the burgeoning automotive market. Analysts predict continued investment in India’s automotive sector, driven by factors like a growing middle class, government incentives, and the increasing demand for sustainable transportation solutions.

Strategic Move for Tenneco

Tenneco's decision to list its Indian subsidiary is a calculated strategic maneuver, providing access to capital markets and paving the way for accelerated regional expansion. While the IPO was structured as an Offer for Sale (OFS), meaning Tenneco did not directly receive the proceeds, it enhances the subsidiary’s visibility, brand recognition, and financial agility. A source familiar with the company's strategy noted, “This listing isn't just about raising capital; it’s about empowering the Indian team and giving them the resources to drive innovation and growth independently.” This move allows Tenneco to capitalize on the projected growth of the Indian automotive component market, estimated to reach $200 billion by 2030, and leverage the country’s skilled workforce and cost-competitive manufacturing base.

Despite a recent dip in revenue for Tenneco Clean Air India Ltd, the entity continues to demonstrate financial strength, boasting a significant 33% rise in profit after tax and impressive Return on Capital Employed (ROCE) figures. This financial performance, coupled with a strong market position in key segments, positions the company for sustained success in a competitive landscape.

Navigating a Competitive Landscape and Future Innovation

Tenneco Clean Air India operates within a dynamic and increasingly competitive automotive component market, facing competition from established players like Bosch, Timken, and SKF, as well as emerging local manufacturers. However, the company differentiates itself through its market leadership in critical areas, including clean air solutions for both commercial and passenger vehicles, and advanced suspension technologies. It holds a dominant 57% market share in clean air solutions for Indian commercial truck OEMs and a substantial 52% share in shock absorbers and struts for passenger vehicles.

Looking ahead, Tenneco Clean Air India is prioritizing innovation in areas aligned with the evolving needs of the Indian market, particularly in the realm of electric vehicles (EVs) and emission control. With India aiming for 30% EV adoption by 2030 and implementing stringent emission norms, the company is investing in research and development to deliver cutting-edge technologies that enable cleaner and more sustainable transportation solutions. “We are focused on developing technologies that not only meet current regulatory requirements but also anticipate future trends,” stated one industry expert. The company's two R&D centers in India are playing a crucial role in localizing global technologies and tailoring solutions to the specific demands of the Indian market.

Local Manufacturing and Economic Impact

Tenneco's commitment to India extends beyond financial investment and encompasses a significant manufacturing footprint and a dedication to local employment. The company operates 12 manufacturing facilities strategically located across seven states and one Union Territory, contributing to local industrial development and providing employment opportunities for thousands of skilled workers. With over 1,352 employees directly associated with Tenneco Automotive India Private Limited and nearly 3,000 at Federal-Mogul Goetze (India) Limited, the company is a significant contributor to the Indian economy.

Furthermore, Tenneco prioritizes building a localized supply chain, adhering to global procurement standards while supporting local vendors and manufacturers. This approach not only reduces lead times and costs but also strengthens the domestic automotive ecosystem. The company's commitment to local manufacturing and job creation underscores its long-term commitment to India’s economic growth and its role as a key global manufacturing hub. Analysts foresee further investment from international companies like Tenneco as India solidifies its position as a manufacturing powerhouse.