Knorr-Bremse to invest €200 million to develop Technology and AI Hub in Chennai, India

Chennai, India (Metro Rail Today): Knorr-Bremse has announced plans to invest up to €200 million over the next five years to develop a state-of-the-art modular campus in Chennai, reinforcing India’s strategic importance in the company’s global growth roadmap. The new facility will integrate production, engineering, and Artificial Intelligence (AI) operations at a single location and is designed to accommodate up to 3,500 employees in the long term.

The groundbreaking ceremony for the campus was held in mid-February, marking a major step in expanding Knorr-Bremse’s footprint in one of the world’s fastest-growing transport markets. The new Chennai site will complement the company’s existing development and production facilities in Pune and Palwal, with the first phase of operations expected to commence by the end of 2027.

“India is a key region for us with great potential – as a location for innovation, a production hub, and a transport market,” said Marc Llistosella, CEO of Knorr-Bremse AG. “Our future campus enables us to connect global capabilities even more closely, make processes more efficient, and accelerate projects. This creates a strong foundation for our Rail and Truck divisions to grow profitably – in India as well as in international markets. The campus is an important building block in our global strategy and a clear commitment to Knorr-Bremse’s long-term growth path.”

The cross-divisional industrial facility will span approximately 188,000 square metres, equivalent to around 26 football fields, and will be developed in multiple phases. The first phase includes production plants for metro, regional, and high-speed train entrance systems, as well as braking system components for commercial vehicles. Subsequent phases will add office complexes aimed at consolidating Global Business Services functions such as HR and Finance, enhancing process efficiency and global coordination by 2030 and beyond.

Chennai has emerged as a leading technology hub in recent years, supported by a strong engineering ecosystem and robust infrastructure. Knorr-Bremse further strengthened its presence in the city by launching a dedicated AI centre in 2025 as part of its global digital strategy. The new modular campus, located near this AI centre, is designed for flexible expansion, reflecting the company’s long-term investment approach of allocating four to five percent of annual revenue toward strategic growth initiatives.

The Chennai facility will cater to both domestic demand and export markets. Knorr-Bremse is responding to strong growth projections in India’s freight and passenger rail sectors, as well as the expanding commercial vehicle segment, including trucks, buses, and delivery vehicles. The company is already supplying braking and entrance systems for metro projects in cities such as Delhi and Chennai and will equip India’s first high-speed trains with braking, entrance, air-conditioning, and sanitation systems. Combined annual sales of Knorr-Bremse’s Rail and Truck divisions in India have already surpassed €300 million and continue to grow steadily.

Sustainability remains a central focus of the project. The new campus is designed to meet LEED Platinum certification standards, signifying high levels of energy efficiency and environmental performance. It is also aligned with EU taxonomy criteria for environmentally sustainable economic activities. During the first construction phase alone, photovoltaic systems with an installed capacity of approximately 2,500 kWp are planned, supporting renewable energy integration at the site.

Commenting on the development, Mrs. Mamta Shah, MD & CEO, Urban Infra Group, said, “Knorr-Bremse’s decision to position Chennai as a combined production and AI hub underscores India’s growing role in the global rail and mobility supply chain. Integrating advanced manufacturing with digital and AI capabilities will not only strengthen local value creation but also enhance India’s export competitiveness in high-technology rail systems.”

With this strategic investment, Knorr-Bremse further cements India’s role as a core pillar in its global innovation, manufacturing, and sustainability strategy.