In a strategic pivot towards growth markets German automotive supplier Webasto Group has announced plans to invest in a new production plant in India as part of a major global realignment set for 2026. The move underscores India’s rising importance as a key manufacturing and development base for the company, especially as it navigates financial challenges in its core European and North American markets.
CEO Jörg Buchheim stated in December 2025 that the realignment includes a sharper focus on regionalization, expanding development in the US and China and “investing in a new production plant in India.” This planned facility will build upon Webasto’s existing Indian footprint, which includes major manufacturing and R&D centers in Pune (Maharashtra) and Chennai (Tamil Nadu).
Catering to India’s Booming SUV Market
The new plant is aimed at supporting rising domestic demand, particularly for sunroofs and advanced roof systems in India’s fast-growing sport utility vehicle (SUV) segment. Webasto has already demonstrated its local capability by launching the high-tech “Infinity Roof” system for Mahindra’s electric SUVs directly from its Indian operations in 2025.
Restructuring for Resilience
The increased focus on India coincides with a broader corporate restructuring. Webasto faced a liquidity crisis in 2024-25 due to high debt, weaker demand in Europe and the US, and losses in its charging solutions business. To stabilize, the company secured a €1.4 billion financing package in late 2025 and has shifted to a more decentralized model granting greater autonomy to regional units like India to better respond to local markets.
By relocating strategic investment to resilient, high-growth regions like India, Webasto aims to build a more agile and financially sustainable global operation, leveraging India’s cost advantages and booming automotive sector to offset pressures in traditional markets.