Rico Auto Industries Limited is strengthening its position in India’s electric mobility supply chain after securing new automotive component orders valued at approximately ₹2,500 crore across five-year programmes. The company is directing additional manufacturing capacity towards hybrid vehicles, electric drive systems, and advanced automotive components. At the center of the Rico Auto EV Expansion strategy is its greenfield manufacturing facility in Hosur, Tamil Nadu, which supports upcoming electrification programmes.
With major customers including Toyota, Maruti Suzuki, BMW, Bosch, and Musashi, Rico aims to capitalize on growing demand for lightweight components, EV transmissions, and next-generation vehicle technologies across domestic and international markets.
What Is Rico Auto’s ₹2,500 Crore EV Expansion?
Rico Auto Industries has secured approximately ₹2,500 crore in new automotive component orders across five-year programmes, supporting its expansion into hybrid and electric vehicle manufacturing. Its Hosur facility is central to this strategy. However, the order value covers multiple automotive applications and does not represent an EV-only investment or annual revenue.
₹2,500 Crore Orders Strengthen Rico’s EV Growth Strategy
Rico’s latest order pipeline provides long-term visibility for its automotive components business as manufacturers accelerate electrification.
The company clarified that the ₹2,500 crore represents the combined value of new programmes over approximately five years, rather than immediate revenue or a single-year sales target.
Key highlights:
- New orders: ₹2,500 crore across five-year programs.
- EV and hybrid contribution: Approximately 7%–9% of the business mix.
- Manufacturing expansion: Hosur greenfield facility in Tamil Nadu.
- Major customers: Toyota, Maruti Suzuki, BMW, Bosch, and Musashi.
- FY26 revenue: ₹2,478 crore, compared with ₹2,212 crore in FY25.
- FY26 capital expenditure: ₹212 crore, compared with ₹151 crore previously.
The company has not disclosed customer-wise order values, individual programme timelines, or the proportion attributable exclusively to EV components.
Hosur Greenfield Plant Becomes Key EV Manufacturing Hub
The Hosur manufacturing facility plays an important role in the Rico Auto EV Expansion strategy.
Located near the Toyota-Aisin automotive manufacturing ecosystem, the facility is designed to support hybrid transmission systems, electric powertrains, and precision-engineered components.
Rico has outlined phased expansion at Hosur, alongside its existing hybrid and EV manufacturing activities in Chennai.
Capital expenditure is being aligned with customer programme requirements, allowing the company to increase production capacity while maintaining financial discipline.
Although management previously targeted production during 2026, the latest disclosed information does not establish the facility’s fully operational capacity.
Toyota, Maruti Suzuki and BMW Lead Customer Programs
Rico’s expanding customer portfolio demonstrates its growing participation in conventional, hybrid, and electric vehicle technologies.
Its disclosed automotive programs include:
- Toyota: Hybrid vehicle transmission components.
- Maruti Suzuki: Engine, transmission, electric drive unit, and motor-related components.
- BMW: Electric drive unit and motor components.
- Bosch: EV transmission components for electric axle systems.
- Musashi: Electric vehicle transmission components.
Rico also supplies automotive components for platforms associated with Tata Motors and Mahindra.
Other programmes involve Cummins engine components, Knorr-Bremse braking systems, and Hero engine components and alloy wheels.
These relationships highlight the company’s diversified business model rather than an exclusive shift towards electric vehicles.
Advanced Aluminum Components Power EV Transition
Lightweight engineering is becoming increasingly important as automakers seek better efficiency, vehicle performance, and electric driving range.
Rico manufactures precision aluminum castings, machined components, structural assemblies, transmission housings, and electric drivetrain parts.
Its disclosed manufacturing capabilities include
- More than 120 high-pressure aluminum die-casting machines.
- Annual component production capacity exceeding 110,000 metric tons.
- Die-casting machine locking forces ranging from 135 to 2,700 tonnes.
- Components weighing up to 20 kilograms.
- More than 3,000 machining and special-purpose machines.
- Assemblies representing over half its product portfolio.
Aluminium casting contributes approximately 89% of reported revenue in the referenced presentation, spanning EV, hybrid, engine, and transmission applications.
These capabilities position Rico to serve multiple vehicle technologies using shared manufacturing expertise.
Rico Auto FY26 Revenue and Capital Expenditure Performance
Rico reported stronger annual revenue alongside increased investment in manufacturing infrastructure.
| Financial Year | Revenue (₹ Crore) | Capex (₹ Crore) |
|---|---|---|
| FY22 | 1,861 | 187 |
| FY23 | 2,302 | 236 |
| FY24 | 2,160 | 193 |
| FY25 | 2,212 | 151 |
| FY26 | 2,478 | 212 |
Revenue increased approximately 12% year-on-year in FY26, while capital expenditure rose by ₹61 crore.
The reported asset turnover ratio improved from 1.11 in FY25 to 2.10 in FY26, suggesting stronger reported asset utilisation, although the underlying calculation was not detailed.
Why Rico’s EV Expansion Matters for India
The Rico Auto EV Expansion reflects an important transformation within India’s automotive supply chain.
Automakers increasingly require locally manufactured components for electric motors, transmissions, lightweight structures, and integrated electric axles.
Domestic suppliers capable of serving both hybrid and battery-electric platforms could benefit from this transition.
However, Rico’s electrification business remains relatively small, contributing approximately 7%–9% of its overall mix.
What Comes Next for Rico Auto?
The Rico Auto EV Expansion provides a foundation for long-term manufacturing growth, supported by diversified customers and a substantial multi-year order pipeline.
Future performance will depend on programme launches, production ramp-ups, plant utilization, operating margins, and the pace of vehicle electrification.
The ₹2,500 crore order value signals potential future business, but actual revenue will depend on customer demand and programme execution.
For India’s electric mobility industry, Rico’s investment in advanced component manufacturing illustrates how established automotive suppliers are adapting to the next generation of transportation.
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