Rehlko Engines: Powering India’s Next Infrastructure Boom
At bauma CONEXPO India 2026, mojo4industry speaks with Eric Fontaine, President, Rehlko Engines, and Massimiliano Bonanni, GM – Product Strategy, Rehlko Engines, about India’s growing infrastructure market, the shift towards value-driven engine solutions, localisation, emission standards and the future of engine innovation.
Q: How has bauma CONEXPO India 2026 been for Rehlko, and what are your key takeaways from the exhibition?
Eric Fontaine: It has been a great show. India continues to be an important and rapidly growing market for the construction and industrial sectors, and it is a region we cannot afford to overlook.
One of the key takeaways from bauma CONEXPO India is the continued growth of the market. We are also seeing a positive shift in customer expectations. Traditionally, the focus was largely on finding the lowest-cost engine. Today, customers are increasingly looking beyond price to understand the overall value proposition.
They want to know how well we can support them, what our global service network looks like and how our products can contribute to their success.
At Rehlko, we take pride in our torque-dense engines, which deliver high torque in a compact package. This gives our customers greater design flexibility, particularly in a diverse market like India, where equipment manufacturers have to address a wide range of applications and operating requirements.
We are excited about these opportunities and the role we can play in India’s infrastructure and industrial growth.
Q: How strategically important is the Indian market for Rehlko Engines?
Eric Fontaine: India is strategically important to us. More than a decade ago, we established a manufacturing facility in Aurangabad, where we produce a significant portion of our diesel engines. It was an important investment based on our understanding of India’s potential, and we are now seeing that potential translate into tangible opportunities.
We manufacture locally for many of our customers, and these customers are also expanding their operations in India. They need suppliers who can offer more than locally manufactured engines. They are looking for a reliable sourcing ecosystem, strong aftermarket support and the service capabilities required to sustain their growth.
Our early investment in India has positioned us well to address these requirements. Looking ahead, we will continue to engage with customers to understand their demand and growth plans. As these opportunities evolve, they could create further avenues for investment.
Q: Does Rehlko plan to expand its manufacturing operations in India?
Eric Fontaine: Absolutely. Based on my conversations with some of our strategic customers, I believe the question is not whether we will need to make further investments, but when.
Our approach is to closely monitor our customers’ growth trajectories, understand their future requirements and make timely investments to support them. As demand becomes clearer, we will be better positioned to evaluate the opportunities.
Q: How do you see India’s growth prospects for the construction and off-highway equipment industry over the coming years?
Eric Fontaine: India is one of the most exciting growth markets right now, particularly for construction equipment. The future has never looked brighter.
You can see the manufacturing presence of OEMs, engine manufacturers and component suppliers growing across the country. The scale of construction activity around New Delhi alone demonstrates the pace of development and the opportunities available.
The energy in the market is encouraging. We are excited about India’s infrastructure ambitions and the opportunities they create for the entire industry.
Q: How are initiatives such as Make in India and ease of doing business contributing to the growth of companies like Rehlko?
Eric Fontaine: Local manufacturing and sourcing are certainly becoming important considerations for customers, particularly those with global operations.
Recently, we met a significant prospective customer whose growth plans could create an important opportunity for us. One of the factors that made our offering attractive was the localisation of our newer 1.4-litre electronically controlled engine. Most of its components are sourced in India, and the engine is manufactured and assembled at our Aurangabad facility.
The combination of local manufacturing, component sourcing and service support made the proposition attractive to a customer looking to expand its own business in India.
This demonstrates how a strong local manufacturing ecosystem can support customer growth while strengthening our own position in the market.
Q: The Indian market appears to be moving from a low-cost purchasing approach towards higher-value products. Are customers now ready to pay a premium for better technology and performance?
Massimiliano Bonanni: The Indian market is evolving rapidly and catching up with developments we have seen in Europe and North America over the past five years.
During my conversations with customers, I have noticed that they are no longer focused exclusively on low-cost components or products. They increasingly want to understand the value proposition and how an engine, together with the machine it powers, can deliver greater value to the end-user.
So, yes, I believe the market is evolving towards a more value-driven approach. There are clear signs that India is moving closer to the expectations and technology requirements of mature markets, and it could eventually go beyond them.
Q: Are Indian construction equipment OEMs ready to adopt advanced engine technologies and solutions such as those offered by Rehlko?
Massimiliano Bonanni: Absolutely. We are seeing encouraging signs that OEMs are preparing for this transition. The questions we receive increasingly focus on how to integrate new technologies and extract the maximum value from them.
Manufacturers are clearly planning for a more premium market, where the focus is not simply on the lowest purchase price but on delivering better performance and greater value to end-users.
This is an important shift because the right technology can improve equipment efficiency, reliability and overall operating performance.
Q: Can India be considered a market to watch over the next two decades for construction and off-highway equipment?
Massimiliano Bonanni: I certainly believe so. India’s progress in road infrastructure has been remarkable. I have been visiting the country since the early 2000s, and I have personally witnessed the tremendous development that has taken place.
Road infrastructure often sets the foundation for broader economic development. As the road network expands and infrastructure investment continues, the construction and off-highway equipment sectors are likely to benefit as well.
India is following a development path that creates significant opportunities for equipment manufacturers, component suppliers and technology providers. The long-term outlook is very promising.
Q: Your showcased engine incorporates advanced emissions technology. How are India’s evolving emission regulations and government policies supporting the adoption of cleaner off-highway engines?
Massimiliano Bonanni: India is taking a constructive approach by moving towards increasingly stringent emission requirements for off-highway equipment. The European Stage V standards provide an important reference point for understanding the direction of emissions technology.
The diesel particulate filter (DPF) featured in this engine helps control particulate emissions, including particle mass and particle number. This is important because particulate pollution has direct implications for the air we breathe. The engine’s emissions-control technology also addresses nitrogen oxides (NOx), another major pollutant.
What is encouraging is that India is pursuing this transition progressively. Introducing more stringent requirements in a phased manner allows the industry and the broader economy to adapt while continuing to move towards cleaner technologies.
Ultimately, the objective is to meet higher emission standards without creating unnecessary disruption to the industry.
Q: Looking five years ahead, how do you see Rehlko Engines positioned in the Indian market?
Massimiliano Bonanni: I am optimistic about Rehlko’s prospects in India. We believe there is significant potential in bringing the concept of engine downsizing—or, more precisely, right-sizing—to this market.
Right-sizing means ensuring that an engine is appropriately matched to the machine and its application so that it operates under optimal conditions. This can help reduce fuel consumption, creating direct value for customers.
It can also help after-treatment systems operate under more suitable conditions, potentially reducing downtime and improving overall performance. In addition, engine downspeeding can contribute to lower noise levels and greater operator comfort.
Operating at lower engine speeds can also help reduce mechanical wear and support longer service life when the engine is correctly matched to the application.
These are the benefits we want to bring to our customers: improved efficiency, reliability, comfort and lower operating costs. We believe these attributes will become increasingly important as India’s construction and off-highway equipment market continues to mature.
