Sandhar Technologies expands manufacturing footprint with new Nalagarh vehicle components plant

Sandhar Technologies Limited, one of India’s leading vehicle components manufacturers, has inaugurated a new manufacturing facility in Nalagarh, Himachal Pradesh. The facility is dedicated to producing a wide range of sheet metal components for the two-wheeler industry, strengthening the company’s position in a highly competitive segment of the automotive supply chain.

The expansion marks an important step for Sandhar Technologies as it looks to capitalize on the growing demand for two-wheelers in India and abroad. With commercial production expected to commence by the end of December, the Nalagarh facility is set to play a pivotal role in catering to original equipment manufacturers (OEMs) seeking high-quality, reliable sheet metal parts.

Why is Sandhar Technologies opening a new sheet metal components facility in Nalagarh?

Sandhar Technologies has confirmed that the new Nalagarh unit will specialize in producing an array of sheet metal products, including frame parts, handle bars, complete frames, swing arms, and other essential metal assemblies. These components form the backbone of two-wheeler design and durability, and their consistent quality is critical for motorcycle and scooter makers competing in both domestic and export markets.

The decision to establish operations in Nalagarh is strategic. Himachal Pradesh, particularly the Baddi–Nalagarh industrial corridor, has emerged as a favored manufacturing hub due to its industrial policy support, proximity to northern automotive clusters, and availability of skilled labor. For Sandhar Technologies, which already operates across several Indian states, adding a facility here not only enhances regional capacity but also optimizes logistics for serving major two-wheeler OEM clients.

The Indian automotive industry has historically leaned on robust component suppliers to maintain production cycles. With increasing localization requirements and a push for cost competitiveness, tier-1 suppliers like Sandhar Technologies are accelerating investments in manufacturing capacity.

What role will the Nalagarh facility play in the two-wheeler supply chain?

Sandhar Technologies stated that the Nalagarh plant will add scale to its sheet metal business, a crucial vertical within the company’s broad product portfolio. Two-wheelers represent one of the largest automotive segments in India, with manufacturers such as Hero MotoCorp, Bajaj Auto, Honda Motorcycle & Scooter India, and TVS Motor Company driving production volumes that often cross 20 million units annually.

Sheet metal components like frames and swing arms are essential for vehicle stability and performance. Given that OEMs are pushing for faster production cycles and tighter quality standards, suppliers must ensure precision engineering at scale. By commissioning the Nalagarh facility, Sandhar Technologies signals its readiness to deepen engagement with leading two-wheeler brands.

The plant is expected to complement the company’s existing operations across India, where it already manufactures diverse product lines ranging from locking systems and aluminum die-cast parts to plastic modules, mirrors, and electronic products.

How does this expansion fit into Sandhar Technologies’ growth strategy?

Sandhar Technologies has consistently expanded its footprint to align with demand cycles in the automotive industry. Founded in 1985, the Gurugram-headquartered manufacturer has grown into a diversified supplier with more than 40 manufacturing plants in India and abroad by 2021. Its customers include nearly all major Indian and international OEMs across two-wheelers, passenger vehicles, commercial vehicles, and off-highway equipment.

The Nalagarh expansion underscores the company’s focus on reinforcing its competitive edge in high-volume product categories. With India remaining the world’s largest two-wheeler market, the demand for frame assemblies and sheet metal parts is expected to remain resilient. Moreover, the growing emphasis on exports — particularly to Southeast Asia, Africa, and Latin America — means that suppliers with flexible and scalable manufacturing setups are better positioned to serve global demand.

Institutional observers point out that automotive suppliers are also under pressure to absorb fluctuations in input costs, particularly steel. By establishing regionally optimized plants, firms like Sandhar Technologies can mitigate logistics costs and better manage supply chain volatility.

What does the Nalagarh plant mean for the Himachal Pradesh industrial ecosystem?

The choice of Nalagarh highlights the town’s growing appeal as an industrial hub. Located in Solan district, the Nalagarh–Baddi belt has attracted significant investments from the pharmaceutical, FMCG, and automotive sectors. The state government’s tax incentives and supportive infrastructure have played a role in drawing manufacturing companies to set up shop in this region.

For Sandhar Technologies, this expansion is likely to generate local employment opportunities and contribute to the regional economy. Automotive supply chains often have multiplier effects, creating demand for ancillary suppliers, logistics providers, and service operators. Analysts following the sector suggest that every new manufacturing facility in such clusters strengthens the state’s positioning as a reliable industrial destination.

How is the Indian automotive industry shaping supplier expansions like this?

The inauguration of the Nalagarh plant comes at a time when the Indian automotive sector is balancing strong domestic demand with supply chain challenges. In 2021, two-wheeler sales have faced short-term pressures due to fuel price increases and rural demand fluctuations, but long-term fundamentals remain intact. With increasing urbanization, affordability-driven purchases, and the entry of new models, OEMs continue to project sustained growth.

Suppliers like Sandhar Technologies are investing in capacity despite short-term headwinds, reflecting confidence in long-term demand. Additionally, government initiatives such as the Production-Linked Incentive (PLI) scheme for the auto and auto components sector are pushing suppliers to expand and modernize their facilities. The Nalagarh unit, therefore, is not just a capacity expansion but also a statement of intent to align with India’s evolving industrial policy framework.

Can Sandhar Technologies leverage Nalagarh to strengthen its market position?

Sandhar Technologies’ decision to open a new plant in Nalagarh signals a calculated bet on the resilience of India’s two-wheeler market. By focusing on high-volume, essential components like frames and swing arms, the company positions itself at the heart of OEM production schedules. This is not a flashy diversification into futuristic products; rather, it is a steady reinforcement of core competencies.

From a strategic perspective, the timing reflects both opportunity and necessity. The automotive industry in 2021 is navigating a global semiconductor shortage, input cost escalations, and pandemic-induced uncertainties. In such an environment, suppliers capable of delivering cost-efficient, high-quality parts close to OEM hubs are likely to be favored.

Sandhar Technologies’ track record of working with leading brands adds credibility to its Nalagarh initiative. If commercial production begins smoothly by the end of December, as planned, the facility could strengthen long-term partnerships and provide the company with greater bargaining power in an increasingly competitive supplier landscape.

The inauguration of the Nalagarh manufacturing facility represents an important milestone for Sandhar Technologies. By expanding its footprint in the sheet metal components space, the company reinforces its role as a critical partner in the two-wheeler industry. For Himachal Pradesh, the investment adds to the region’s industrial momentum, while for India’s automotive ecosystem, it is a reminder that component suppliers remain the unsung backbone of manufacturing growth.

As the plant gears up for commercial production, attention will turn to how effectively Sandhar Technologies integrates Nalagarh into its nationwide network and leverages this expansion to capture a larger share of the two-wheeler supply chain.