Lumax Auto Technologies: When Indians Want More Than Just A Car

Business Overview

Lumax Auto Technologies Ltd (LATL) is one of India’s leading auto component manufacturers. The company specializes in components such as head and tail lamps, air intake systems, plastic tanks, door panels, switches, sensors, actuators, antennas, gear shifters, two-wheeler frames, seating structures, swing arms and aftermarket products. The company serves prominent OEMs including M&M, Maruti Suzuki, Tata Motors, Bajaj Auto and HMSI.

LATL operates 26 manufacturing plants across 6 Indian states. These facilities are strategically located near automobile manufacturing hubs at Manesar, Gurugram, Mehsana, Pune, Nashik, Waluj, Pantnagar, Bhiwadi and Bangalore. The company also maintains an R&D center in Manesar and an Engineering Center in Pune. In Nov’25, LATL inaugurated a greenfield R&D center in Bengaluru called “SHIFT” to accelerate product innovation, electronic development and software integration across business verticals.

Business Segments

LATL classifies its operations into four verticals.

The Advanced Plastics segment contributes 57% of revenue. Products include cockpits and consoles, door panels, headliners, trims, louvers, air intake systems, plastic fuel and urea tanks, head lamps, tail lamps and front and rear fenders. The segment serves both four-wheeler and two-wheeler OEMs with interior and exterior components.

The Structures and Control Systems segment accounts for 23% of revenue. This vertical manufactures gear shifters, control housing, monostable e-shifters, smart actuators, shift towers, seating structures, two-wheeler frames and swing arms. The segment addresses both manual and automatic transmission requirements.

The Mechatronics segment contributes 2% of revenue. Products include power window switches, oxygen sensors, telematics control units and antennas (including shark fin and telematics antennas). This segment focuses on electronic and sensor-based components.

The Aftermarket segment represents 14% of revenue. Products sold through this channel include horns, engine oils and lubricants for the replacement market.

Segment Deep Dive

The Advanced Plastics vertical serves as the backbone of LATL’s business. Content per vehicle in this segment ranges from Rs 55,000 to Rs 60,000 for four-wheelers and Rs 5,000 to Rs 6,000 for two-wheelers. The acquisition of IAC India in Feb’23 transformed this segment by adding vehicle interior systems including instrument panels, cockpits, door and trim systems, and headliner and overhead systems. IAC India is a key supplier to M&M, Maruti Suzuki and Volkswagen.

The Structures and Control Systems vertical benefits from the shift toward automatic transmission vehicles. The gear shifter business, operated through the Mannoh JV (55% stake), supplies to Maruti Suzuki, M&M, Toyota, Tata Motors, Honda Cars and Daimler. The company has an order book of Rs 60 cr in this product category.

The Mechatronics segment represents LATL’s thrust toward electronics and software integration. The company has formed JVs with global technology partners including AlpsAlpine (50% stake) for electric devices and components, Yokowo (50% stake) for antennas and vehicle communication, and Ituran (50% stake) for telematics. The segment supports LATL’s transition toward becoming a Tier 0.5 systems integrator.

Strategic Partnerships and Acquisitions

LATL has pursued an acquisition-led strategy to gain technical knowhow, reduce time to market and increase wallet share with OEMs.

The Cornaglia JV (50% stake, formed 2007) focuses on emission systems including air filters and plastic urea and fuel tanks. Key customers include Tata Motors, Toyota, VW, M&M and MG. The Mannoh JV (55% stake, formed 2008) produces gear shifters with an order book of Rs 60 cr. The FAE JV (84% stake, formed 2017) manufactures oxygen sensors primarily for M&M.

The JOPP JV (50% stake, formed 2019) supplies transmission products to M&M and Maruti Suzuki with an order book of Rs 55 cr. The AlpsAlpine JV (50% stake, formed 2021) has an order book of Rs 110 cr for electric devices and components supplied to Maruti Suzuki.

The IAC India acquisition in Feb’23 was a transformative deal. LATL acquired 75% stake for Rs 440 cr, valuing the company at Rs 587 cr. This acquisition transformed LATL from a primarily two-wheeler component supplier to a major four-wheeler focused company. IAC India’s product portfolio includes cockpits, consoles, door and trim systems, and headliner systems. In Nov’25, LATL acquired the remaining 25% stake, taking ownership to 100%.

The GreenFuel Mobility acquisition in Nov’24 gave LATL a foothold in the CNG and hydrogen vehicle component ecosystem. The company acquired 60% stake for Rs 133 cr at 6x EV/EBITDA. GreenFuel specializes in high-pressure fuel delivery and storage systems for CNG and hydrogen vehicles. It holds 35% market share in these components with Maruti Suzuki contributing 45% of revenue and Tata Motors 20%. GreenFuel has also bagged orders for tubes and fittings used in CNG fuel intake systems from a leading PV OEM.

LATL is also setting up its first office in China to serve as a group resource center for sourcing, tooling and technology scouting.

Customer Base

M&M is the largest customer, contributing 26% of FY24 revenue. This share has grown following the IAC India acquisition. Revenue from M&M grew 44% YoY in 2QFY26. M&M has been outperforming the domestic PV industry with 21% volume growth in YTD FY25 against 1% industry growth. M&M’s domestic PV market share has risen from 7.3% in FY22 to 12.7% in YTD FY25. LATL is expanding its share of business with M&M through start of supply of shark fin antennas.

Bajaj Auto contributes 15% of revenue. LATL started supplying components for the Bajaj Chetak EV scooter in 1HFY25. Chetak volumes have scaled rapidly from 8,187 units in FY22 to 1,67,745 units in YTD FY25. Revenue from Bajaj Auto posted strong growth in 2QFY26.

HMSI contributes 5% of revenue. Revenue from HMSI doubled YoY in 2QFY26 due to start of production of new products.

Maruti Suzuki and Tata Motors contribute 8% and part of the remaining revenue respectively. The GreenFuel acquisition has increased share of business with both OEMs. Revenue from Maruti Suzuki grew 37% YoY and Tata Motors grew 76% YoY in 2QFY26.

Product Portfolio Characteristics

Bulk of LATL’s product portfolio is powertrain agnostic with applications across ICE and EV platforms. Products such as door panels, trims, cockpits, consoles, headliners, louvers, tanks, power window switches, telematics control units, antennas, gear shifters, seating structures, frames and swing arms work across both powertrains. Air intake systems and oxygen sensors are the main ICE-specific products.

Content per vehicle for four-wheelers ranges from Rs 55,000 to Rs 60,000. For two-wheelers, content per vehicle ranges from Rs 5,000 to Rs 6,000.

Industry Context

The Indian automotive market is poised for sustained growth over the next decade. The overall market is expected to grow from USD 113.8 billion in 2024 to USD 248 billion by 2034, representing an 8.1% CAGR during 2025-34. The industry is on track to reach USD 300 billion by 2026.

The Indian auto component industry has reached a scale of USD 80.1 billion in FY25, growing 5-7% during the year. Exports from the sector are expected to grow at 28-32% per annum, scaling from USD 23 billion in FY25 to USD 70-100 billion by 2030. The PLI scheme for the automobile and auto components sector has a budgetary outlay of Rs 25,938 crore from FY23 to FY27 to incentivize domestic manufacturing of advanced automotive technology products.

The domestic two-wheeler market is expected to reach USD 28.84 billion in 2025 and grow to USD 37.30 billion by 2030 at a 5.28% CAGR. The industry has grown in double digits in FY23 and FY24 after declining during FY19-22. Hero MotoCorp leads the market followed by Honda. The premium segment is seeing increased demand with the share of entry-level motorcycles (75-110 cc) declining from 62% in FY19 to 48.5% in FY24, while the 110-125 cc segment has risen from 14.2% to 27.4%.

Electric two-wheelers have emerged as a high-growth segment. Total EV sales in India reached 20.37 lakh units in FY24-25, marking 15.68% YoY growth. Electric two-wheelers accounted for 59.4% of total EV sales with 12.09 lakh units sold, representing 6.2% penetration of all two-wheelers. In November 2025, the electric two-wheeler industry delivered 1.16 lakh units, the second-highest monthly sales during the year. TVS leads the electric two-wheeler segment followed by Bajaj and Ather.

The domestic passenger vehicle market has seen a structural shift toward SUVs. The share of SUVs has doubled from 32% in 2021 to over 50% in 2024. The Tata Punch was the highest-selling vehicle in 2024 with 2.02 lakh units, breaking Maruti Suzuki’s four-decade streak at the top. Other top-selling models include the Maruti Brezza and Hyundai Creta. M&M’s domestic PV market share has risen from 7.3% in FY22 to 12.7% in YTD FY25. In September 2024, Maruti Suzuki held 41.17% market share, Tata Motors 13.75% and M&M 12.58%.

CNG vehicles have gained significant traction. Maruti Suzuki dominates with 70.5% market share in CNG cars as of FY25, followed by Tata Motors at 16.13% and Hyundai at 10.04%. One in every three Maruti vehicles sold in FY25 was a CNG variant. Thirteen of Maruti’s 16 models are offered with factory-fitted CNG kits. The GreenFuel acquisition positions LATL to benefit from this growing segment.

Four-wheeler EV sales reached 1.15 lakh units in FY24-25, reflecting 15% YoY growth. The electric vehicle market is projected to grow at a 49% CAGR from 2022 to 2030. Tata Motors leads the electric passenger vehicle segment followed by M&M.

Premiumization is reshaping consumer preferences. According to industry reports, 85% of Indian buyers express interest in premium vehicle models. Sunroof penetration has reached 25% of the PV market and is expected to increase further. The ADAS component market is projected to reach approximately USD 1 billion by FY28, a sixfold increase from FY23. Consumers are increasingly adopting cars equipped with digital infotainment systems, smartphone connectivity, advanced safety features and connected car technologies.

Rural recovery is supporting two-wheeler demand. The 2024 kharif season witnessed strong monsoon rains leading to a bumper harvest. Key agricultural zones of South and Central India received above normal rains. Higher reservoir levels and adequate soil moisture have resulted in higher rabi acreage. Farmer-centric schemes including higher MSPs, subsidized electricity, solar pumps, fertilizer subsidies and farm loan waivers are boosting rural incomes. Finance penetration in two-wheelers has risen from 47% in FY18 to 58% in FY23.

Growth Triggers

Premiumisation is driving higher content per vehicle. The Indian automotive industry is seeing a shift toward premium vehicles with features for driving comfort, safety, infotainment and aesthetics. There is growing adoption of sunroofs, digital infotainment systems, airbags, modern LED lamps and sleek interiors. LATL supplies door panels, trims, head and tail lamps, power window switches, automatic gear shifters, telematics control units and shark fin antennas to address this trend.

The ramp up of acquisitions will drive revenue growth. IAC India and GreenFuel Mobility are scaling up. The smaller JVs with Mannoh, JOPP, AlpsAlpine and Yokowo are also ramping up with combined order books exceeding Rs 300 cr.

New product launches at key OEMs benefit LATL. M&M’s SUV pipeline, Bajaj Chetak’s scaling and new launches at Maruti Suzuki and Tata Motors drive volume growth. Based on strong 1HFY26 performance, LATL raised FY26 revenue growth guidance to 25% from 20%.

The PLI scheme with Rs 25,938 cr budget for the automotive sector offers incentives up to 18% for domestic manufacturing of Advanced Automotive Technology products. The PM E-Drive scheme includes a Phased Manufacturing Program requiring minimum localization percentages. Import substitution opportunities exist in components such as automatic gear shifters.

GST rate increase on small cars (from 18% to 28% as per recent government announcement) shifts consumer preference toward SUVs where LATL has higher content per vehicle.

Risks

Delay in OEM launch pipelines could impact revenue growth and capacity utilization. A broad-based industry slowdown, particularly in two-wheelers, would reduce demand. Supply chain disruption from geopolitical tensions could affect availability of semiconductors and electronic components. Delay in new product launches by LATL could lead to market share loss.

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