Auto components maker Uno Minda Ltd announced its entry into the four-wheeler passenger vehicle seating systems segment with a proposed investment of around ₹320 crore for a greenfield manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra. According to the latest regulatory filing, the company's board of directors has approved the setting up of the state-of-the-art facility, which is expected to commence operations by Q4FY28. The plant will have an annual capacity of 2.40 lakh units and will be executed under Uno Minda Tachi-S Seating Private Ltd, a joint venture between Uno Minda and TACHI-S Company Ltd, Japan, a global automotive seating manufacturer. The facility will support the new product line and enable Uno Minda to manufacture complete seating systems for passenger vehicles.
The latest expansion marks Uno Minda's entry into complete four-wheeler passenger vehicle seating systems, expanding its presence in a higher-value automotive product category. As reported by The Economic Times, the joint venture has already secured an anchor customer order from a leading original equipment manufacturer (OEM). The company stated that this move will significantly increase its revenue potential per vehicle by expanding its product portfolio within the passenger vehicle segment. The facility will support the new product line and will enable Uno Minda to manufacture complete seating systems for passenger vehicles. This strategic move represents a significant shift for the company into premium automotive components, with the company noting that entering this segment is one of the highest value product categories in the automotive supply chain. Nomura highlighted that the passenger vehicle seating business was "a whitespace for Uno Minda" and that the expansion "expands content per vehicle significantly (around ₹20,000-70,000 per vehicle)," making it "a key positive."
Nomura estimates that the investment could add roughly ₹800 crore in revenue, equivalent to about 3% of its FY28 revenue forecast, assuming an asset turnover of around 2.5x. The brokerage noted that currently, Uno Minda caters only to the two-wheeler and commercial vehicle seating segments, which contributed around 7% of FY26 revenue. The expansion significantly increases the company's addressable market and strengthens its position in a high-value automotive component category. Nomura emphasized that the opportunity could scale further with successful execution, new customer additions and continued premiumisation in the passenger vehicle industry. However, initially, this investment hardly moves the needle for Uno Minda that generated ₹19,658 crore revenue in FY26. Motilal Oswal Financial Services expects Uno's revenue to reach ₹27,591 crore by FY28, aided by rising content per vehicle, premiumization and the ramp-up of new businesses.
The company has multiple growth engines beyond the seating systems expansion, with its lighting business contributing 22% to FY26 revenues and castings business contributing 19%. Uno's first electric-vehicle powertrain facility at Khed is scheduled to begin operations in H2FY27, while the company has approved a second plant in Chhatrapati Sambhajinagar for an investment of ₹550 crore to manufacture electric drive units and dedicated hybrid transmissions. The company's sunroof order book now exceeds ₹350 crore of annual potential revenue, while its infotainment business recently secured a new order with an estimated peak annual value of ₹600 crore. Uno's shares trade at around 38 times FY28 estimated earnings, as per Bloomberg, with seven out of 11 ongoing projects expected to either start production or ramp up in FY27.
