Nearly eight years after it was spun out of Bosch, motor maker SEG Automotive is busy finding new avenues of growth in the electric vehicle space.
12 Mar 2025 | 1976 Views | By Shahkar Abidi
In the throes of World War I, as the clamour of conflict reverberated across Europe, a quieter but no less significant revolution was unfolding in the world of automotive engineering. The demands of the battlefield had elevated the automobile from a novel convenience to a military necessity, spurring a race ...
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In the throes of World War I, as the clamour of conflict reverberated across Europe, a quieter but no less significant revolution was unfolding in the world of automotive engineering. The demands of the battlefield had elevated the automobile from a novel convenience to a military necessity, spurring a race for innovation in the industry. Engineers across the continent, driven by the exigencies of war, began crafting engines that were smaller, lighter, and faster, prioritising horsepower over heft.
Among these trailblazers stood Robert Bosch, a German industrialist with an uncanny eye for the future. In March 1914, Bosch unveiled the first electric starter motor—a device that liberated drivers from the hazardous task of hand-cranking their vehicles into life. A year prior to that, the company introduced alternators and later laid the groundwork for advancements like the now-ubiquitous 'start-stop' system.
For much of the 20th century and beyond, these innovations were shepherded by Bosch’s Starter Motors and Generators division. But in January 2018, in a move emblematic of the shifting tides of global industry, Bosch divested the division, allowing it to re-emerge under new ownership and a new name: SEG Automotive.
Now owned by China’s Zhengzhou Coal Mining Machinery Group Co., SEG Automotive retains its roots in the world of starter motors and generators, while pivoting decisively toward the burgeoning e-mobility sector—a fusion of past and future, innovation and reinvention.
Now, three decades after entering the Indian market, SEG Automotive stands on the brink of its next transformative chapter. Having doubled its India revenue within just four years to exceed Rs 2,130 crore in FY24, the company is now eyeing a more ambitious target: crossing Rs 4,000 crore in revenue in the next three-to-five years. At present, India is the third-largest market for SEG, and contributes about 16-19% to the company's total turnover.
“Similar to the global vision, we in India [want to] more than double our turnover in the next three to five years,” said Anil Kumar MR, Managing Director of SEG Automotive. The parent, SEG Group too aims to double its global sales to over €3 billion, having reported €1.74 billion in turnover in 2023.
India Opportunities
India, a key market for SEG, plays a dual role in this evolution. As Kumar put it, the company is intent on maintaining its leadership in the ICE segment while carving out a global niche in light electric mobility (LEM). “We are proud that India has already been evolving as the competent centre of LEM for the world,” Kumar noted. Currently, over 100 engineers support both local and global projects from India for LEM, with plans for further expansion based on market growth.
With three plants in Hosur, Bengaluru, and Hassan, the company is following a strategy of pre-investment in manufacturing capacity. This foresight has enabled them to achieve a production capacity of 900,000 to 1 million units in EVs across various combinations, including hub motors, mid-mounts, and high-voltage systems, which is sufficient to meet market demand over the next three years. The management indicated that these investments amounted to hundreds of crores over the past few years.
“The market of the future will be completely different from the market 10 years ago,” said Ferdinando Sorrentino, Global CEO of SEG Automotive, during a recent visit to India in January. Sorrentino views SEG’s shift as a foundational transformation—from traditional mechanics to the sophisticated interplay of electronics, hardware, and software known as mechatronics. “This was the first step where we created the base. Now, on this basis, we want to grow our house of the future,” he explained.
Electrification, Sorrentino acknowledged, is the inevitable destination, though the journey is neither uniform nor straightforward. “We know that in the future, it will go there. Now, if this is the end journey, we have to understand how long it will take—the voyage, the travelling time,” he said. Sorrentino underscored that the pace of transition varies by region. “There will be some regions that will transit much, much faster, and there will be other markets which will be much more step by step,” he observed.
For instance, China’s passenger car segment is expected to electrify rapidly, as are light commercial vehicles in India. Meanwhile, Europe may adopt a more gradual, hybridised approach. Despite these variations, Sorrentino envisions a future where electrification accounts for the vast majority of the market within the next two decades. Kumar emphasised the importance of tailoring global technologies to fit India’s unique market conditions.
“We use synergies from the global market and strongly localise to see how we are competitive enough and to make the product fit for the Indian market.” The company, said Sorrentino, is prepared for a post-ICE industry. “Our ICE business, step by step, will disappear, but we want to be the last one there, and move into electrification,” he remarked.
Electrification
At Bosch, electrification operated under a separate vertical, and the separation enabled SEG to carve out its own identity and fully embrace the electrification opportunity. “This is the opportunity that we have identified. Now we can work in different segments, we can work on different products,” said Sorrentino, reflecting on the company’s newfound freedom to innovate.
Like many large corporations, Bosch had reached a juncture where certain business lines no longer aligned with its broader vision. Divesting those businesses became the logical course of action, and allowed SEG to explore new possibilities. For SEG, the transformation wasn’t merely about operational independence; it was about becoming a more efficient, agile organisation, capable of meeting customer demands with precision.
As Sorrentino observed, the company has emerged as a “more agile, value-adding partner” for its clients, leveraging its autonomy to deliver greater impact. For employees moving from Bosch to SEG, the change brought a mix of challenges and opportunities. “Usually in a carve-out there is always a mixed feeling,” Sorrentino acknowledged, alluding to the emotional and professional complexities of such transitions. Yet, he was quick to underscore the positive potential inherent in the shift. Drawing on a broader life metaphor, he noted, “It’s always like in life – each crisis will always bring additional opportunities.”