Bharat Forge set to acquire AAM India’s axle business, CCI invites public comments

The Competition Commission of India (CCI) has initiated an investigation into the proposed acquisition of AAM India Manufacturing Corporation Private Ltd (AAMCPL) by Bharat Forge Ltd (BFL). As part of the regulatory process, the CCI has invited public comments on whether the deal could adversely impact competition in the Indian commercial vehicle (CV) axle market.

Bharat Forge, a global leader in metal forging and a key supplier of critical automotive components, has signed a stock purchase agreement to acquire 100 percent equity of AAMCPL. The transaction is expected to strengthen Bharat Forge’s presence in the axle manufacturing space, allowing it to expand its customer base and manufacturing footprint within India.

Before the deal’s closure, AAM India’s parent company, American Axle & Manufacturing Holdings Inc. (AAM Holdco), will restructure its Indian operations. This includes carving out its captive IT support and product engineering services and transferring its e-axle assembly lines to AAMCPL. The transaction marks AAM Holdco’s exit from the CV axle market in India as it pivots towards other business segments.

The Indian commercial vehicle industry has witnessed significant growth, driven by rising demand, increasing exports, and government initiatives. With the global supply chain shifting towards India under the ‘China Plus One’ strategy, the domestic market is poised for further expansion. Bharat Forge views the acquisition as a strategic move to enhance its market position amid the ongoing transition to electric and alternative fuel-based vehicles.

Market share

The deal raises competition concerns as Bharat Forge’s joint ventures with Meritor Heavy Vehicle Systems — Meritor HVS (India) Limited and Automotive Axles Limited — already operate in the axle market. Post-acquisition, the combined market share of these entities could range from 10-15 percent in overall CV axles and up to 50-55 percent in the medium and heavy commercial vehicle (MHCV) segment.

While original equipment manufacturers (OEMs) like Tata Motors, Ashok Leyland, and VE Commercial Vehicles control a significant portion of the market through in-house axle production, independent suppliers still play a crucial role. The CCI is assessing whether the proposed acquisition could reduce market competition, particularly in the supply of forged axle sub-components and drum brakes.

The commission has invited stakeholders, including industry players and consumers, to submit objections or suggestions within ten days of the public notice. The final approval of the transaction will depend on the CCI’s assessment of its competitive impact.

Bharat Forge anticipates completing the acquisition within 120 days of securing regulatory approval. If cleared, the deal will further consolidate its position as a key supplier in India’s rapidly evolving commercial vehicle market.