German automotive parts supplier Mahle is again weighing an initial public offering for its India unit, reported Bloomberg, citing sources.

The company has begun preliminary talks with prospective advisers for a possible share sale in Mumbai, according to the sources.

Mahle is expected to appoint banks and start formal groundwork for the transaction in the near term, they added.

The proposed listing may raise roughly $300m to $400m, according to the people, who added that the discussions are still at an early stage and that details, including the size of the offering, could yet be revised.

Mahle had previously explored a stock market debut for its Indian arm in 2024, but those plans were not taken forward.

A representative for Mahle told Just Auto that the company does not comment on market speculation.

The renewed IPO discussions come as Mahle began production of e-compressors in Coimbatore, with an investment of €7m ($8.2m).

E-compressors are used in thermal management systems for electric vehicles and are linked to battery life, charging speed and vehicle range.

At full utilisation, the facility can produce more than 300,000 e-compressors a year for domestic and overseas customers.

The start of e-compressor production in Coimbatore is expected to create about 50 jobs, the company said, adding that the move aligns with the government’s “Make in India 2.0” initiative.

The Coimbatore site already makes starter motors, alternators, traction motors and controllers for two-wheelers and three-wheelers.

With the new line, Mahle has widened its electrification-related product range in India.

Mahle entered India in 1958 through a joint venture to make pistons.

From 1997, it expanded into other segments including valvetrain components, filtration and engine peripherals, thermal management, and electronics and mechatronics, while also establishing an aftermarket business and a global technology centre in the country.

The group now operates across 15 locations in India and employs about 5,900 people.