Garrett Motion — Business Overview
What does Garrett Motion do?
Garrett Motion designs and manufactures turbochargers and next-generation compression technologies for vehicle and industrial customers worldwide. The company's core product is the turbocharger — a device that forces more air into an engine, allowing it to burn fuel more efficiently and produce more power from a smaller package. Garrett sells these products both directly to vehicle manufacturers (OEMs, original equipment manufacturers) and through an aftermarket distribution network for repairs and upgrades.
The business sits across three broad product areas, rather than formally reported segments:
| Product Area | Description | Revenue Share (approx.) |
|---|---|---|
| OEM Turbochargers (ICE) | Turbos for gasoline, diesel, natural gas, and hybrid engines across light vehicles, trucks, agriculture, marine, and industrial equipment | ~86% of total (OEM combined) |
| Electric & Fuel Cell Products | Fuel cell air compressors, E-Turbo, E-Powertrain, and E-Cooling compressors for zero-emission vehicles and industrial use | Included in OEM share; growing |
| Aftermarket & Performance | Replacement turbos and performance upgrades sold through 370+ distributors in 165 countries | ~14% of total revenue |
How does Garrett Motion make money?
The primary revenue engine is selling turbochargers to OEMs on a program-by-program basis tied to engine platform lifecycles. Garrett is awarded a contract when an OEM designs a new engine or vehicle platform, and then supplies components for the life of that platform — often many years. Prices are negotiated per award and can fluctuate based on commodity costs or foreign exchange. Notably, OEM customers are not required to purchase a minimum volume, and many can terminate programs for convenience, which means Garrett's revenue tracks closely with actual vehicle production volumes.
The aftermarket business provides a more stable, recurring revenue layer. With an installed base of nearly 150 million turbocharged vehicles, Garrett sells replacement parts through a global distributor network. This segment is less tied to new vehicle production cycles and benefits from the long service life of turbocharged engines. The company is also expanding its remanufactured ("REMAN") turbocharger offering in Europe, the Middle East, Africa, and North America, adding over 400 additional applications to the portfolio.
What market does Garrett Motion operate in?
Garrett competes in the global OEM turbocharger market, which it describes as a $10 billion industry. Total global turbocharger production reached nearly 50 million units in 2025, up from 49 million in 2024. Turbocharger penetration on gasoline engines has grown rapidly, from 14% in 2013 to 51% in 2025, and is expected to reach 53% by 2026. However, the long-term outlook for ICE turbochargers is one of gradual, managed decline: production volumes are expected to drift back toward 2022 levels by 2030 as battery electric vehicles (BEVs) — which do not use traditional turbochargers — take a larger share of the market. S&P projects BEVs will represent 28% of global light vehicle production by 2030.
The hybrid vehicle segment is a meaningful near-term tailwind. Hybrid vehicles (excluding mild hybrids) are expected to grow from 16 million units in 2025 to 26 million by 2029, a compound annual growth rate of 11%. Many hybrids still use turbocharged ICE engines, and some use electric turbo or compressor technology — both areas where Garrett competes. The company is also investing in adjacent markets such as hydrogen fuel cell compression, data center backup power generation, and industrial HVAC cooling, where its core technology in high-speed compression applies beyond automotive.
Who are Garrett Motion's main competitors?
The turbocharger industry is relatively consolidated, with Garrett holding a leading global position alongside a small number of large players. The filing does not name specific competitors directly, but Garrett positions itself as the technology leader with roughly 1,350 patents and patents pending, a dedicated team of approximately 1,330 engineers across six R&D centers, and over 70 years of industry history. The company highlights several claimed competitive advantages:
- Technology differentiation: Leadership in variable geometry turbines (VNT, a premium technology that improves efficiency), high-temperature materials, ball-bearing rotors, and oil-free foil bearings for electric compressors — capabilities it says are hard to replicate.
- Scale and OEM relationships: Garrett supplies more than 60 OEMs globally. Its top ten customers accounted for 62% of net revenues in 2025, with Stellantis (12%), BMW (11%), and Ford (11%) as the three largest.
- Low-cost manufacturing: More than 89% of products are manufactured in low-cost countries, with facilities in China, India, Mexico, Brazil, Romania, and Slovakia. Over two-thirds of materials are sourced from low-cost countries.
Where does Garrett Motion operate?
Garrett is a genuinely global business, with manufacturing, engineering, and sales spread across multiple continents. Its seven manufacturing facilities are located in low-cost regions: China, India, Mexico, Brazil, Romania, and Slovakia — accounting for over 89% of production. Six dedicated R&D centers and ten close-to-customer engineering centers are deployed in major automotive production regions to tailor products for local OEM requirements.
China is a particularly important geography, both as a manufacturing base and as a growing end market, especially for electric and hybrid vehicles. The filing notes that battery-electric heavy-duty truck adoption in China is accelerating due to falling battery costs and supportive government trade-in policies. Garrett has made specific investments in local capabilities in China and India to serve OEMs expanding in high-growth regions.
The company's aftermarket network spans 165 countries, reflecting genuinely worldwide commercial reach. The filing flags ongoing geopolitical and trade tensions, elevated inflation in Europe, and slower-than-expected growth in China's domestic economy as current headwinds — all of which feed through to automotive production volumes and, in turn, Garrett's OEM revenues.